Maintenance Cost Calculator Formula
Understand the math behind the maintenance cost calculator. Each variable explained with a worked example.
Formulas Used
Estimate (% of Value)
pct_estimate = pct_methodEstimate (Per Unit)
unit_estimate = per_unit_methodMonthly Reserve (Higher)
monthly_reserve = (pct_method > per_unit_method ? pct_method : per_unit_method) / 12Variables
| Variable | Description | Default |
|---|---|---|
property_value | Property Value(USD) | 350000 |
maintenance_pct | Annual Maintenance Rate(%) | 1.5 |
num_units | Number of Units | 2 |
per_unit_annual | Per-Unit Annual Budget(USD) | 2500 |
pct_method | Derived value= property_value * maintenance_pct / 100 | calculated |
per_unit_method | Derived value= num_units * per_unit_annual | calculated |
How It Works
Estimating Maintenance Costs
Two common methods for budgeting maintenance and repairs:
Percentage-of-Value Method
Annual Maintenance = Property Value x Rate%
Typical range: 1-2% of property value annually
Per-Unit Method
Annual Maintenance = Number of Units x Per-Unit Budget
Typical range: $1,500-$3,500 per unit per year
Use the higher estimate for conservative budgeting
Worked Example
A $350,000 duplex using 1.5% value rate and $2,500 per unit budget.
property_value = 350000maintenance_pct = 1.5num_units = 2per_unit_annual = 2500
- 01Percentage method: $350,000 x 1.5% = $5,250
- 02Per-unit method: 2 x $2,500 = $5,000
- 03Higher estimate: $5,250
- 04Monthly reserve: $5,250 / 12 = $437.50
Ready to run the numbers?
Open Maintenance Cost Calculator