The 1% Rule: How Much Should You Budget for Home Maintenance?
The '1% rule' is the most widely cited home maintenance guideline: budget 1% of your home's purchase price per year for maintenance and repairs. On a $500,000 home, that's $5,000/year or $417/month—on top of your mortgage, taxes, and insurance. This calculator pre-loads that 1% rate so you can immediately see your all-in true monthly cost. However, the 1% rule is a blunt instrument: it overestimates costs for new construction and significantly underestimates them for older homes in harsh climates. Adjust the maintenance rate slider to model 1.5% or 2% if your home is over 20 years old or located in a climate with extreme winters.
Expert tip: The 1% rule originated as a rough approximation for average US homes in temperate climates. Canadian homes face additional maintenance pressure from freeze-thaw cycles, ice damming, and heating system wear. Building industry professionals often recommend the '1% rule' as a floor for homes under 10 years old, 1.5% for homes 10–30 years old, and 2% for homes over 30 years—regardless of purchase price. Price alone is a poor predictor of maintenance cost; age and condition are far more relevant.
True Cost Homeownership Calculator
Full PITI breakdown · Maintenance reserve planning · True cost of ownership
Home Details
Covers filters, lightbulbs, lawn care, and minor plumbing/paint fixes.