Home Maintenance Budget Calculator (1% Rule)
Budget for home upkeep with the 1% rule — set aside 1% of your home’s value each year, adjusted for the home’s age, and see the monthly savings target.
How it works
Age adjustment = min(2%, age × 0.02%) · Effective rate = base rate + age adjustment · Annual = home value × effective rate · Monthly = annual ÷ 12
The 1% rule says a home costs roughly 1% of its value each year to maintain — a $350,000 home means about $3,500 a year. It is a planning average, not a monthly bill: some years you spend nothing and others a roof or furnace blows the budget, which is exactly why you save monthly. Because older homes need more, this calculator nudges the rate up with the home’s age so the reserve keeps pace with wear.
Worked example
A $350,000 home at the base 1% rate is $3,500 a year. Adding a 15-year age adjustment of 0.30% lifts the effective rate to 1.30%, giving $4,550 a year, or about $379 a month set aside for repairs.
Frequently asked questions
Is the 1% rule accurate?
It is a rough planning figure, not a guarantee. Studies of actual homeowner spending land anywhere from 1% to 4% of value per year depending on age, climate and how much you defer. Treat 1% as a floor for a newer home and budget higher for an older one.
Why adjust for the home’s age?
Systems and materials wear out on a schedule — roofs at 20–25 years, water heaters at 10, HVAC at 15 — so an older home crosses more of those replacement thresholds each year. Raising the rate with age keeps your reserve from falling behind.
Should I keep this money separate?
Yes. A dedicated maintenance or repair fund means an emergency roof or appliance failure comes out of savings rather than credit. Automating the monthly amount into a separate account is the easiest way to keep it intact.
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This calculator is for educational purposes. Double-check important results before acting on them.