A simple starting point, not a prediction
Percentage-of-value rules are rough planning shortcuts. Two homes with the same value can have very different maintenance needs because of age, climate, systems, finishes and deferred work. Use the result as a starting reserve and replace it with a component-based plan.
Build a component schedule
List the roof, HVAC, water heater, exterior paint, appliances and other major components. Record condition, expected service window and replacement planning amount. Divide future amounts across the remaining years to estimate an annual contribution.
Separate maintenance and improvement
Routine maintenance preserves condition, while remodeling changes features or quality. Emergency repairs and insurance deductibles may need separate cash reserves.
FAQ
Is 1% always enough?
No. It is only a common planning input. Older properties, harsh climates and expensive systems may require more.
Should the budget use purchase price or current value?
Neither perfectly predicts component costs. A detailed inventory is better; use the value-based method only as an initial benchmark.
Explore project categories and individual cost calculators.