AFH Startup Reserve Calculator
Estimate monthly operating burn and 3, 6, 9, and 12-month working capital reserves. Combine with startup costs for a total cash planning figure. This is a planning estimate, not a financial recommendation.
These calculators provide estimates for planning purposes only. Actual costs, reimbursement rates, taxes, staffing requirements, licensing requirements, and profitability can vary by location and individual circumstances. This tool is not financial, legal, tax, licensing, or medical advice. Results are based on entered assumptions.
How it works
- Monthly operating burn adds monthly fixed costs, staffing, utilities, insurance, and other recurring expenses.
- 3, 6, 9, and 12-month reserves multiply monthly burn by those month counts.
- Recommended working capital in this worksheet uses the number of months you expect before occupancy.
- Estimated total cash requirement is estimated startup cost plus that recommended reserve.
Example using the default assumptions
If monthly burn is $20,000 and you expect 6 months before occupancy, the 6-month reserve is $120,000. Adding a $150,000 startup cost estimate produces $270,000 estimated total cash requirement. That is a planning sum, not advice to raise a specific amount.
Important assumptions
- This is a planning estimate, not a financial recommendation.
- Actual time to occupancy varies widely.
- Some costs in the startup calculator may overlap with reserve expenses; do not double-count without checking.
Frequently asked questions
How much operating reserve should I have?
This worksheet shows 3, 6, 9, and 12-month amounts from your burn rate. It does not tell you which one you must hold.
Is this the same as working capital in the startup calculator?
The startup calculator includes a working-capital line. This tool estimates reserve from monthly burn so you can compare.
Should I include mortgage payments in burn?
If the payment continues before residents move in, include it in monthly fixed costs.
What if occupancy starts sooner?
Use fewer months. The table still shows longer reserves for comparison.
Does this include renovation overruns?
Only if you put extra cash in startup cost or other expenses.
Is this advice to keep a specific bank balance?
No. It is a planning estimate.
Need another AFH estimate?
Explore occupancy, staffing, startup costs, Medicaid rates, and other Adult Family Home planning tools. Every calculator is free and works without an account.
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