carrying charge

1. The cost of owning and storing a commodity during a period of time. This cost influences the difference between the futures price and the expected future spot price.
2. The cost of holding real estate prior to development. For example, spending $100,000 for land that is unlikely to be developed for ten years involves substantial annual costs for interest (if funds for the purchase are borrowed) and taxes.
3. Interest charged on the balance of an installment loan.
4. See cost of carry.