HOA Reserve Calculator

Project your HOA's reserve fund against upcoming major capital projects. Compare reserve growth (with contributions + investment return) against the inflated cost of major replacements — and see whether a special assessment is likely.

Current reserve fund balance

Annual reserve contribution

Years to project

Major project cost coming due

roof, siding, boiler, etc.

Cost inflation %

Reserve investment return %

Projected reserve balance

$730,107

Project cost at completion

$571,164

inflated forward

Funding gap

Reserve surplus

$158,943

Special assessment if short

How the math works

HOA reserve studies project how much cash the association needs to fund major replacements (roofs, boilers, siding, pavement). Reserves compound at the fund's investment rate; project costs inflate at construction cost inflation (often 3-5%+). A well-funded HOA has reserves close to or above the projected cost at the replacement date.

Fannie Mae and FHA typically require HOA reserves of 10% of the annual budget minimum. Strong HOAs fund to 70-100% of full replacement value. Low reserves signal risk of special assessments — factor that into buying decisions for condos and townhomes.

How to Use

Enter the current reserve fund balance.
Enter annual reserve contributions from dues.
Set the years until the major project is due.
Enter the estimated major project cost in today's dollars.
Add inflation and investment return assumptions.

Frequently Asked Questions

What's a healthy reserve level?

Strong HOAs fund to 70-100% of calculated full replacement value; adequate is 40-70%; under 30% is high risk. Reserve studies (every 3-5 years) are the source of truth.

Why do cost projections use construction inflation?

Major repairs (roofs, siding) track construction cost inflation, often 3-5% per year — above general CPI. Using 3-5% is more conservative than 2% general inflation.

What triggers a special assessment?

When reserves + dues don't cover a needed project, the board may levy a one-time special assessment. Assessments of $5K-20K+ per unit are not rare for underfunded HOAs.

Does FHA care about HOA reserves?

Yes. FHA condo approval requires reserves of at least 10% of annual budget (with some exceptions). Weak reserves block FHA loans — a major issue in underfunded communities.