Capital Plan Gap Calculator

Multi-year capex plans rarely match reserves. This calculator sizes the funding gap.

Required capex (5 yr)

Current reserve

Annual contribution

Earnings rate

Projected gap

$183,631

Projected 5-yr balance

$1,066,369

Annual gap funding needed

$36,726

How the math works

Project reserve balance forward 5 years with earnings. Gap = required − projected.

Run this every 18 months as part of annual budget. Capex plans drift as construction costs rise and component lives shift; a stale plan from 5 years ago routinely understates current-year requirements by 30-50%.

How to Use

Enter required capex next 5 years.
Enter current reserve balance.
Enter annual reserve contributions.
Enter reserve earnings rate %.
Read projected gap.

Frequently Asked Questions

How to build plan?

Walk each system (roof, HVAC, plumbing, paint, appliances, paving). Use manufacturer life × age × replacement cost. Add contingency 15-25%. Phase over 5-10 years. Total gives required reserve funding.

Reserve study?

Professional reserve study $3-15k. Required in some markets (CO condos, CA HOA). Recommended for portfolios >$10M. Gives independent view; operational teams systematically under-scope capex plans.

Funding gap options?

Increase annual contribution. Special assessment (MF HOA) or owner capital call (syndication). Capex loan. Sell outperformers to fund underperformers. Refinance and pull equity. Each has cost; gap ignored = forced sale.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.