DoorlarkHow the math works
Sales per month = homes sold ÷ months Absorption rate = sales per month ÷ active listings Months of inventory = active listings ÷ sales per month
Months of inventory is how long the current listings would take to sell at the recent pace if nothing new came on the market. The absorption rate is the same idea as a percentage: how much of today's inventory sells in a month.
Worked example (the default numbers)
| 72 sales in the last 6 months | 12 a month |
| 48 active listings | |
| Absorption rate: 12 ÷ 48 | 25% a month |
| Months of inventory: 48 ÷ 12 | 4.0 |
Example numbers, not a real market. Pull yours from the MLS.
How to pull the numbers from your MLS
- Pick one area and one price band, for example $350K to $450K, 3+ bedrooms, in two zip codes.
- Count closed sales in that search for the last 6 or 12 months. Six months reacts faster. Twelve smooths out seasons.
- Count active listings in the same search today. Leave out pendings and coming soon. Enter pendings separately if you want the ratio.
- Run it for the band above and below your listing too. Sellers often see why the price matters when the band one step up has twice the inventory.
Reading the number
A common rule of thumb in the industry calls under about 4 to 5 months a seller's market and over about 6 a buyer's market. Treat that as a starting point, not a standard. Local markets don't follow it neatly, so compare your number with the same area last year. NAR's monthly existing-home sales report includes months' supply nationally if you want a reference point.
How to use it with a seller
"In your price range there are [active] homes for sale and about [sales per month] sell a month. That's [months] months of homes. Buyers have choices, so the ones that sell first are priced right on day one. Here are the three you're competing with."
Pair it with the CMA template at the listing appointment, and with the price reduction calculator when a listing sits.
Run your own numbers: the agent net income calculator shows take-home per deal and per year after split, cap, fees, costs and a tax set-aside.
Sources
Checked Oct 30, 2026.
Related free tools and guides
- CMA Template: free printable CMA with comps and adjustments.
- Price Reduction Calculator: a price cut compared with another month of carrying costs.
- Price reduction letter to seller: five templates that lead with the numbers.
- Agent Net Income Calculator: your take-home per deal and per year after split, cap, costs and a tax set-aside.
FAQ
How do you calculate absorption rate in real estate?
Divide the homes sold in a period by the number of months to get sales per month, then divide that by the current active listings. 12 sales a month against 48 listings is a 25% monthly absorption rate.
What is months of inventory?
Active listings divided by sales per month. It's how long current inventory would last at the recent pace if no new listings came on.
What absorption rate is a seller's market?
There isn't an official cutoff. A common rule of thumb treats under about 4 to 5 months of inventory as favoring sellers and over about 6 as favoring buyers. Compare with your own market's history.
Should I use 6 or 12 months of sales?
Six months reacts faster to change. Twelve months smooths out seasonal swings. Use the same window every time you compare.
Does Doorlark save my numbers?
No. The calculator runs in your browser and nothing is sent to us.
By Doorlark Editorial Team. For planning only, not legal, tax or financial advice.