Replacement reserve & CapEx calculator
Size the annual reserve you should be putting aside to replace furniture and equipment as it wears out. Add your asset classes, set quantities, unit costs and useful lives, and get the total replacement value and the yearly CapEx contribution.
Free · no sign-up · works in your browserLast reviewed
| Asset class | Qty | Unit cost | Life (yrs) | Age (yrs) | Annual reserve | |
|---|---|---|---|---|---|---|
| £18,000 | ||||||
| £5,250 | ||||||
| £5,143 |
Replacement reserve
Total replacement value
£294,000
Annual reserve
£28,393
Asset classes
3
Your reserve is only as good as your inventory.
Controlbook holds every FF&E item with its cost, install date and useful life — so the replacement reserve writes itself from real data, and you always know what's due for renewal across every property.
- Live replacement values across one property or a whole portfolio
- Useful-life and install-date data on every asset
- Spot end-of-life clusters before they hit the budget
How to use this tool
- 1Add each asset class you need to renew (beds, seating, soft furnishings, equipment).
- 2Enter the quantity, unit replacement cost and useful life for each.
- 3Optionally set the current age so you can see years-to-replace.
- 4Read the total replacement value and the annual reserve to fully fund it, then export.
What is a replacement reserve?
A replacement reserve (or sinking fund) is money set aside each year so that when furniture, fixtures and equipment reach the end of their life, the cash to renew them already exists. It is standard practice for hotels, build-to-rent and student accommodation operators, HOAs and any owner who wants to avoid a lumpy, unbudgeted capital hit every few years.
The straightforward way to size it is per asset class: replacement cost ÷ useful life gives the amount that class consumes each year. Sum across every class and you have the annual reserve. This calculator does exactly that from your inputs, and shows the years-to-replace for each class so you can see what is coming due soonest.
It is intentionally transparent rather than prescriptive — a formal reserve study layers in inflation, interest on the fund and condition assessments. Use this to get a defensible first number, to challenge a quote, or to model how renewing on a longer cycle changes the annual cost.
Frequently asked questions
What is a replacement reserve for FF&E?
It is an annual amount set aside so the money to replace furniture and equipment is available when each item wears out. Funding it steadily avoids a large, unplanned capital expense when several asset classes reach end-of-life at once.
How is the annual reserve calculated?
For each asset class, replacement cost is divided by useful life to get the yearly amount it consumes. The calculator sums these across every class you enter to give the total annual reserve, and totals the replacement value of the whole inventory.
Does this replace a formal reserve study?
No. A professional reserve study adds inflation, fund interest and on-site condition assessments. This tool gives a transparent, defensible baseline you can produce in minutes and refine later.
Related reading
Academy
How to build a hotel FF&E replacement budget that holds up
FF&E replacement budgets are routinely wrong because they're built from guesses rather than data. Here's how to build one that reflects what your property actually needs.
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How to plan a hotel FF&E refurbishment: a practical guide
A hotel FF&E refurbishment is one of the most complex projects in hospitality operations. Here's how to approach the planning phase so the execution doesn't unravel it.
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