Guides · Planning
How much to budget for home maintenance each year
Two rules of thumb get quoted: set aside 1 percent of the home value a year, or 1 dollar per square foot. Both are starting points. The real number comes from what your house has and how old it is.
The rules of thumb
- The 1 percent rule: 1 percent of the purchase price a year, so $4,000 a year on a $400,000 house. It overstates the cost in expensive markets, where the price is mostly land, and understates it for an old house in a cheap one.
- The square foot rule: about 1 dollar per square foot a year, so $1,800 for an 1,800 square foot house. It ignores the age of the house.
- Both are averages over many years. In a year the roof is replaced you spend far more; in most years far less. The point is to set the money aside every year.
A better number: what your house has, and when it is due
List the big items and the year each went in. Divide the replacement cost of each by its typical life and add them up. That is your yearly set aside for the big things; add a few hundred dollars for the small ones.
The big items and their typical lives
| Item | Typical life | Plan for |
|---|---|---|
| Asphalt shingle roof | 20 to 30 years | The largest single cost on most houses. |
| Furnace or boiler | 15 to 25 years | Yearly service extends it. |
| Central air conditioner | 12 to 17 years | Service yearly; keep the outdoor unit clear. |
| Tank water heater | 6 to 12 years | See how long water heaters last. |
| Exterior paint | 7 to 10 years | Sooner on the sunny side. |
| Deck | 15 to 25 years | Reseal every 2 to 3 years. |
| Appliances | 10 to 15 years | Dishwasher and washer at the short end. |
Ranges from the InterNACHI life expectancy chart. Replacement costs vary by region; in Massachusetts the Handy Circle cost guides show local ranges.
Where to keep the money
- A separate savings account named for the house, with an automatic transfer each month.
- Do not count it as spent when a year passes quietly. The quiet years pay for the roof.
- Keep the receipts for improvements; they matter when you sell. See what to keep in a home maintenance log.
Housemap does the ages
Type your address and Housemap reads the public record for the year built, then takes the age of your furnace, water heater and air conditioner from a photo of each label and shows when each is likely due. That list is the budget, item by item, for your own house.
Questions
Is 1 percent enough for home maintenance?
For a newer house in an average market, usually yes over a run of years. For an older house, or where land is most of the price, budget from the age of the roof, furnace, water heater and air conditioner instead.
How much does home maintenance cost per month?
Using the square foot rule, about 8 cents per square foot per month, so $150 a month on an 1,800 square foot house. The 1 percent rule on a $400,000 house gives about $330 a month. Your house can be above or below both.
What counts as maintenance versus improvement?
Maintenance keeps what you have working: a furnace service, a gutter cleaning, a repair. An improvement adds something or extends the life of the house: a new roof, a kitchen, an addition. Improvements can add to the tax basis of the house; the IRS lists them in Publication 523.
Sources
Related guides
See what is due at your house.
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