A reserve fund (or sinking fund) spreads the cost of big, occasional jobs — roof, lift, external decoration — so leaseholders are not hit with a sudden special levy. This calculator lists your planned works, looks at how many years away each one is, and works out the contribution you need to collect each year to be ready in time.
How the calculation works
For each work item, the calculator divides the estimated cost by the number of years until you need it. Adding those figures together gives the recommended annual contribution. It then compares your total planned cost to the balance you already hold, so you can see your shortfall at a glance.
How to use it
- 1Enter your current reserve balance and the number of flats.
- 2Add each major work item with its estimated cost and how many years until it is due.
- 3Read the recommended annual contribution, and the cost per flat per month.
- 4Review the figures at every AGM and after each major project.
Get good estimates
The output is only as good as your cost estimates. Use a recent surveyor's report or contractor quotes, and revisit the plan when prices change. Pair this with our free reserve fund planner spreadsheet to keep a permanent record.