carrying charge

noun

1. a charge made for carrying an account, usually computed as a percentage of the principal owed.

2. cost incurred while an asset is unproductive.

carrying charge

noun

1. the opportunity cost of unproductive assets, such as goods stored in a warehouse

Word History and Origins

Origin of carrying charge¹

An Americanism dating back to 1890–95

Idioms and Phrases

Interest charged on the balance owed when paying on an installment plan, as in What is the carrying charge for this credit card? The term denotes the amount charged for carrying the remaining debt. [Late 1800s]

The cost incurred when an asset is unproductive, as when aircraft are grounded during a strike, real estate cannot be developed owing to zoning laws, or similar circumstances. For example, The carrying charge for owning this building may send us into bankruptcy .