Build an equipment reserve plan
No account, upload or contact details required.
Turn a quote and timing into a funding question
For each item, enter today’s installed cost, the year you plan to fund it and an optional repeat interval. Year 0 means cash needed now. A future event is placed at that year-end, after twelve monthly contributions for each elapsed year. If the actual work is earlier, shorten the timing or hold more opening cash.
The model escalates each event from today’s cost by your entered annual assumption: event cost in year y = today’s cost × (1 + escalation)^y. Each event is rounded to cents. Zero escalation means unchanged cost; no investment return, tax benefit, financing or insurance reimbursement is assumed.
Immediate cash and the monthly target are separate
An immediate shortfall is max(year-0 work − opening reserve, 0). Future monthly contributions cannot pay a bill due now. The displayed monthly target assumes this immediate shortfall is funded separately at the outset.
For every later year, compare cumulative work with opening reserve plus that separate immediate top-up. Divide any remaining amount by 12 × elapsed years; the largest requirement is the level monthly target, rounded upward to a cent. The current-plan table uses only your actual opening reserve and chosen monthly contribution, so a negative balance identifies unfunded work rather than an assumed loan.
Worked example with recurring work
Over five years, assume $10,000 opening cash and $500 monthly contributions. An immediate $15,000 pump project creates a $5,000 immediate gap. A $12,000 item is planned in year 2 and repeats in year 5; an $8,000 item is due in year 4. With zero escalation, total planned work is $47,000.
The current contribution leaves a modeled $7,000 shortfall at the end of year 5. After separately funding the $5,000 immediate gap, the level monthly target is $533.34. All figures are hypothetical; they do not describe an actual wash or typical equipment cost.
Do not confuse a reserve with an equipment inspection
Ask the appropriate technician to identify condition, downtime, parts availability, installation scope and safe operating requirements. Match quotes to what is included in the asset purchase or lease. Repeat intervals are your planning assumptions, not manufacturer service-life claims.
Items first due beyond the chosen horizon are listed as outside the model. A zero cost is treated as zero, not as an unknown quote. If the cost or condition is unknown, obtain the missing evidence before relying on the plan. Maintain a separate allowance for routine costs already included in operating earnings to avoid double counting.
Use the result in the transaction
Review equipment diligence and build a tailored request list. The annualized monthly target can inform the reserve assumption in the acquisition calculator after you confirm the expense definitions. Inputs are not transferred between pages.