Vacant listing carrying cost calculator

What does it cost to hold a vacant listing?

Carrying cost is what the owner pays every month to keep owning a property that has not sold. It is made of five things: mortgage interest, property tax, insurance, utilities, and upkeep — plus condo or HOA fees where they apply. On a $700,000 home with 20% equity at 5%, the interest alone on the remaining $560,000 balance is roughly $2,300 a month. Add a 0.75% property tax rate ($437 a month), $150 insurance, $200 utilities and $100 of upkeep, and the true carrying cost is about $3,200 a month — roughly $105 a day.

Why this calculator gives a smaller number than the others

Most carrying-cost calculators count the entire mortgage payment as a cost. That is wrong, and it is wrong in the direction that makes their headline bigger. A mortgage payment splits into interest and principal. The interest is gone. The principal is not — it pays down the loan, so the seller still has that money; it has simply moved from their bank account into their equity.

So this tool prints two figures. Cash out the door is what leaves the account. True cost is the part that is genuinely spent. We lead with the true cost because it is the number that survives a seller asking “is that right?”

Does a vacant home in Toronto pay extra tax?

Yes. Toronto’s Vacant Home Tax is 3% of a property’s Current Value Assessment, charged on any residential property that was vacant for six months or more during a taxation year. The rate was 1% when the program began and rose to 3% for the 2024 taxation year. Every Toronto homeowner has to file a declaration each year, even if they live in the home — and if no declaration is filed, the property is deemed vacant and billed.

Does a listing that is for sale still pay it?

It depends on whether it sells. There is an exemption for transfer of legal ownership — a 100% transfer of the property with a closing date inside the taxation year being declared. So a vacant home that is listed and closes that year is exempt. A vacant home that sits unsold for six months or more and does not close is not: simply being listed for sale is not an exemption on its own.

The exception is new construction. A developer can claim the vacant new inventory exemption for up to two consecutive years on a newly built unit that has never been lived in and was actively offered for sale that year.

The other exemptions

Death of a registered owner; the principal resident being in hospital or long-term care; major repairs or renovations with permits issued that prevent occupation; a court order prohibiting occupancy; a unit needed for full-time employment in Toronto by an owner whose principal residence is outside the GTA; and a secondary residence needed for medical reasons. None are automatic — each has to be claimed on the declaration with supporting documents.

Two things worth telling a seller

• The tax forms a lien on the property. If a declaration was never filed, the amount attaches to the property, not the person — so the buyer inherits it. It is a real closing issue, and it is worth confirming the declaration was filed before a vacant property changes hands.
• A false declaration carries a fine of up to $10,000, on top of the tax itself.

Verified against the City of Toronto’s Vacant Home Tax page on August 29, 2026 (City page last modified July 22, 2026). Other municipalities run their own versions at their own rates — check the one your listing is in. This is a summary, not tax advice.

How much does one extra month on market cost?

One month of carrying cost, at whatever figure the calculator gives you. On the example above that is about $3,200. This is the number worth putting in front of a seller who is weighing a price reduction, a staging spend, or a better set of listing photos: those are all one-time costs measured against a recurring one.

It also reframes a price cut. A $10,000 reduction is roughly three months of carrying cost on that example home — so “wait it out” and “cut the price” are closer to each other in cost than they feel.

Where the numbers come from

• Every figure is yours. The defaults are an illustrative example, not a published average. We have not looked up your city’s rate or your seller’s mortgage — replace them.
• Mortgage interest is calculated on the outstanding balance using Canadian semi-annual compounding, which is how Canadian fixed mortgages are quoted. US mortgages compound monthly; the difference is a few dollars a month.
• Property tax is applied to the property value you enter. Real tax bills are based on an assessed value, which is often not the same number.
• Insurance on a vacant home is usually higher than on an occupied one, and many standard policies restrict coverage after a property has been empty for 30 days. Ask the insurer rather than reusing the existing premium.

This is an estimate built from inputs you supply. It is not a quote, an appraisal, or financial advice, and we are not financial advisors. Confirm rates and premiums with the lender and insurer before relying on any figure.