A reserve contribution is the money an association sets aside each year to replace its shared components. For each component, take the future replacement cost, subtract what is already saved for it, and divide by the years remaining. This calculator does that for every row and adds them up.
Components
Replacement cost is today's price. Remaining life is the years until it is due. Current allocation is what is already saved for it (0 is fine).
| Component | Replacement cost today ($) | Remaining life (yrs) | Current allocation ($) | Remove |
|---|---|---|---|---|
Add at least one component with a cost and a remaining life, and the result appears here.
total annual contribution
per unit, per month
unfunded and due this year
With your inputs
| Component | Cost today | Remaining life | Future cost | Already allocated | Annual contribution |
|---|---|---|---|---|---|
| Total annual contribution | |||||
Start a 30-day free trial, no card needed. Keep the full component inventory, the 30-year plan and the report in one place.
For each component, inflate today's replacement cost to the year it is due, subtract what is already set aside for it, and divide by the years remaining. Add the results for every component to get the annual contribution.
This calculator starts at 3%, a common planning assumption. Construction costs can run higher or lower in your area, so use the rate from your reserve study or a recent local bid if you have one.
It is the part of today's reserve balance that is earmarked for that component. If your reserve fund is one pooled account, you can leave it at 0 for every row, or split the balance across the components yourself.
This calculator funds each component on its own, which is called the component or straight-line method. A pooled, cash-flow plan lets money set aside for a far-off project cover a nearer one in the meantime, so the total needed each year is usually lower and steadier.
A component with 0 years remaining needs its full cost now. The calculator shows the unfunded amount as due this year instead of dividing by zero.