Capex Per Unit Calculator

Capex per unit per year is the standard multifamily reserve benchmark. Class A new construction targets $200-300; Class B 10-25 years runs $300-500; Class C 25+ years often needs $500-1,000. Under-reserving inflates short-term NOI but creates large deferred maintenance liabilities. This calculator computes the reserve and benchmarks it against age-appropriate industry norms.

Total units

Annual capex spend

Building age (years)

Capex reserve / unit / yr (target)

Industry typical

Capex / unit / yr

$650

Target total reserve

$42,000

Actual − target

$36,000

Age-adjusted benchmark / unit

$350

Industry typical for property age

How the math works

Capex per unit per year is the multifamily industry's standard reserve metric. Class A new build: $200-300/unit; Class B 10-25 years: $300-500/unit; Class C 25+ years: $500-1,000/unit. Underwrite at age-appropriate level — under-reserving inflates NOI temporarily but forces large catch-up spending later.

Lenders increasingly require physical reserve studies and impose minimum capex reserves at acquisition closing to protect collateral value.

How to Use

Enter total units and annual capex spend.
Enter building age (years) and target capex reserve per unit per year.
Read per-unit capex, target total, and variance against age benchmark.

Frequently Asked Questions

What counts as capex vs maintenance?

Capex extends useful life or adds value (roof, HVAC, kitchen rehab); maintenance preserves current condition (paint, repair, cleaning). Cap rate underwriting deducts capex reserves; opex includes maintenance.

Lender minimum reserves?

Most institutional lenders require $250-400/unit/year reserves for stabilized assets. Bridge and value-add lenders often require front-funded reserves at closing.