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Calculators

Reserve Fund Adequacy Calculator

Find out if your reserve fund is healthy — and how much it would cost to fix it

A reserve fund adequacy calculator answers the question every board member eventually faces: are we setting aside enough money to replace major components when they wear out? The answer lives in your percent funded figure — the ratio of what you have to what you should have, based on the age and replacement cost of your building components.

Enter your current reserve balance, the percent funded figure from your most recent reserve study (or your best estimate), and your unit count. The calculator shows you the fully funded target, your current deficit, how that deficit breaks down per unit, and what it would cost each unit to close the gap over five, ten, or twenty years.

A fund above 70% funded is generally considered strong. Between 50–70% is fair — manageable but worth monitoring. Below 50% is where special assessments become more likely. Below 30% is where lenders and buyers start flagging the association.

Reserve fund inputs

Reserve health

Fund adequacy analysis

Fair

Fully funded target

$538,462

Deficit

$188,462

Below fully funded target

Current balance

$350,000

65.0% funded

Per-unit deficit

$2,356

Each unit's share

Monthly per unit to close the deficit

HorizonMonthly per unitAnnual per unit
5 years$39$471
10 years$20$236
20 years$10$118

These figures represent additional monthly contributions per unit needed to close the deficit. They do not account for ongoing reserve requirements or inflation.

Compare your reserve position with other boards in the Common Area.

Ask the Common Area

This calculator uses your percent funded figure to back-calculate a fully funded target. Actual targets vary by component age, replacement cost, and funding method. Consult a licensed reserve specialist before adopting contribution rates. This is not financial or legal advice.

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Frequently asked questions

What does percent funded mean?
Percent funded is the ratio of your actual reserve balance to the amount you should have based on your components' age and projected replacement costs. A reserve study calculates the fully funded amount by multiplying each component's replacement cost by how much of its life has elapsed. If a roof costs $200,000 and is 15 years into a 20-year life, the fully funded reserve for that component alone is $150,000 (75%). Add all components together and divide into your actual balance to get your association's overall percent funded.
How is percent funded different from reserve percent?
They mean the same thing. Some reserve studies use 'reserve percent' or 'funded ratio' — all describe the ratio of current reserves to fully funded reserves.
What if I don't have a reserve study?
Use this calculator to run scenarios. If you know roughly what major components will cost to replace and how old your building is, you can estimate a percent funded figure. Professional reserve studies typically run $1,500–$5,000 for most associations and are required in many states.
What percent funded should we be targeting?
Most reserve specialists consider 70% or above to be a strong, well-funded reserve. Between 50–70% is considered adequate but warrants attention. Below 50% significantly increases the risk of special assessments. Florida's SB 4-D legislation has made full funding a legal requirement for the SIRS-scoped structural components in condo and co-op buildings of three or more stories.
Does a higher percent funded mean we can reduce contributions?
Not necessarily. Percent funded is a snapshot at a point in time. As components age and replacement costs inflate, the fully funded target grows. Maintaining a high percent funded requires ongoing contributions that keep pace with the moving target. Cutting contributions because you're well-funded today can quickly erode that position over time.