Skip to main content
Calcimator

Absorption Rate Calculator

Calculate monthly sales absorption rate, months of supply, and project sellout timeline.

Inputs

$
months

Results

Monthly Absorption Rate

4 units/mo

Sellout Timeline

20 months

Months of Supply6.25
Sellout (Years)1.67
Annual Absorption48 units
Annual Absorption %60%
Annual Revenue$16,800,000.00
Total Project Revenue$28,000,000.00
How to Use This Calculator
  1. Enter Total Project Units or lots and Sales per Month based on comparable projects or market data.
  2. Set Average Sale Price per unit and Current Inventory of unsold units on the market.
  3. Enter Months of Data used to calculate the absorption rate for statistical reliability.
  4. Review Monthly Absorption Rate — the pace at which the market is absorbing your product type.
  5. Check Sellout Timeline in months and years to plan your development schedule and financing.
  6. Compare Months of Supply against historical norms — under 6 months is a seller's market.

How the result changes with Sales per Month

Sales per MonthMonthly Absorption RateSellout Timeline
1010 units/mo8 months
3535 units/mo2.29 months
6565 units/mo1.23 months
9090 units/mo0.89 months

What each input means

Total Project Units
Total units or lots in the project.
Sales per Month
Average number of units sold per month.
Average Sale Price
Average sale price per unit.
Current Inventory
Currently available unsold units on the market.
Months of Data
Number of months used to calculate the absorption rate.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Total Project Units = 80, Sales per Month = 4, Average Sale Price = 350000, Current Inventory = 25 = 5 input(s) provided
  2. Calculate Monthly Absorption Rate
    Monthly Absorption Rate
    4 = 4
  3. Calculate Sellout Timeline
    Sellout Timeline
    20 = 20
  4. Calculate Months of Supply
    Months of Supply
    6.25 = 6.25
  5. Calculate Sellout
    Sellout
    1.67 = 1.67

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

Land Development

Development Pro Forma Calculator

Create a development pro forma with revenue, costs, profit, and ROI projections.

Land Development

Lot Yield Calculator

Calculate the number of buildable lots from raw acreage after deducting roads, open space, and unusable land.

Land Development

Entitlement Timeline Calculator

Estimate months from raw land to building permit through the entitlement process.

More in Real Estate & Property.