Calculating long-term ROI for hardwood vs. softwood cladding

When choosing a timber for cladding, cost is usually a factor. This includes the upfront cost, of course, as well as maintenance and longevity, all of which add up to the return on investment (ROI) of your new outdoor cladding. Make sure you are making the best choice for your hard earned cash with this guide to long-term ROI for hardwood vs softwood cladding.

What is ROI?

In financial terms, ROI is often considered as the financial gain on an investment. For instance, if you spend X amount of money on an advert, how much extra can you expect to earn in sales? However when looking at timber cladding, the story’s a little different.

For the purpose of this guide, we will look at ROI from the perspective of how long you can expect your cladding to last, and how much maintenance you will need to invest to keep it looking its best.

ROI of Hardwood vs Softwood Cladding

Softwoods, such as Cedar and Larch, often come with a lower upfront cost than hardwoods (particularly tropical hardwoods), making them appealing for projects on a budget. We do not disagree with this. The right softwood offers excellent performance when properly maintained, but that is the keyword here: maintenance.

Many softwood species (though not all) need more frequent staining, sealing or protective treatments than tougher hardwoods. They also typically have a shorter lifespan. Our stronger softwoods, which are great contenders for outdoor timber cladding design, are typically durability class 2 or 3. Canadian Western Red Cedar is a durability class 2 (as cladding, which is use class 3), for example, while Larch is a durability class 3.

This gives them a lifespan ranging from around 10 to 25 years when untreated – assuming good installation and ventilation, which are essential for timber cladding projects. Certainly not bad for your cladding, but also not the best.

Our most durable hardwoods, on the other hand, often come with a higher initial investment. They do, however, offer exceptional longevity and reduced maintenance demands, with durability class 1 species lasting for 25+ years without regular treatments or finishes. Ekki, Ipe, and Cumaru, for instance, are all durability class 1.

Working Out ROIs

Let’s see how this works in action, starting with softwood cladding (note: these figures are estimates and do not reflect actual costs):

• Upfront cost: £45/m²
• Expected lifespan: ~25 years
• Maintenance: Re-coating every 3–5 years at approximately £10/m² per treatment
• Estimated maintenance over 25 years: ~6 treatments = £60/m²

Total 25-year cost: Upfront £45 + Maintenance £60 = £105/m²

Annual cost: £105 ÷ 25 years = £4.20/m² per year

Now let’s take a look at hardwood cladding:

• Upfront cost: £95/m²
• Expected lifespan: ~50 years
• Maintenance: Light cleaning and optional oiling every 5–7 years at ~£6/m²
• Estimated maintenance over 50 years: ~8 treatments → £48/m²

Total 50-year cost:
Upfront £95 + Maintenance £48 = £143/m²
Annual cost: £143 ÷ 50 years = £2.86/m² per year

While this is not exact, and costs/maintenance are likely to differ depending on species and use, the above is a good example of how ROI is often very different from your initial upfront cost.

Find Hardwood and Softwood Timber Cladding

When comparing ROIs of hardwoods and softwoods, what really matters is the species you choose. A durable timber, such as Cedar, Oak or Ekki, is going to withstand a lot more wear and tear than untreated Pine, for instance. Don’t forget no ROI is worth buying timber from illegal or unsustainable forests, so make sure you see the FSC or PEFC code on the invoice. To make sure you are making the best choice for your exterior cladding, get in touch with our timber experts.