Acrelio

Cash flow & planning

How do I calculate an asset replacement reserve?

The answer

For each planned replacement, subtract savings earmarked exclusively for that asset from its expected cost (no less than zero). Divide the remaining funding gap by months until replacement, then round up to the nearest cent. Add individual monthly contributions for the total CapEx reserve target.

General education and tool guidance. Verify applicable law, lease terms, program rules and your own records before acting; this answer does not approve a notice, deduction, rent or financial outcome.

Sources & further reading

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