Rental property
Rental Property Depreciation Calculator
See what your rental could be worth in first-year deductions. Most owners find savings they weren't claiming. Free estimate in 2 minutes, no documents needed.
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Use the calculator to estimate your rental property depreciation
Cost segregation calculator: Add your property details to calculate potential accelerated depreciation expense utilizing a cost segregation study.
Trusted by thousands of property owners
Not a replacement for your CPA. This calculator gives you a planning estimate. Your free proposal includes the engineered study your CPA files with confidence.
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"Excellent experience with R.E. Cost Seg. The team was knowledgeable, responsive, and easy to work with throughout the entire process. They answered all my questions promptly and provided clear guidance every step of the way. I appreciate their professionalism and customer-focused approach and would recommend them to anyone considering a cost segregation study."
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"Have used R.E. Cost Seg for 4 different cost seg studies and all have gone seamlessly, with a great product, at a great price. I appreciate the speed and efficiency, as well as the customer support. They make getting these done an easy and pleasant experience. Thanks!"
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"Completed a Rapid Report for our recently purchased rental property. Working with R.E. Cost Seg was a great experience.
The Rapid Report process was straightforward and easy to complete for a 2-1 rental. The team was professional, responsive, and excellent at communication throughout. Documentation provided went straight to my tax professional - no questions, not clarifications required. Highly recommend them."
The Rapid Report process was straightforward and easy to complete for a 2-1 rental. The team was professional, responsive, and excellent at communication throughout. Documentation provided went straight to my tax professional - no questions, not clarifications required. Highly recommend them."
How to use this rental depreciation calculator
This calculator is designed to be quick, but the accuracy of your estimate depends on clean inputs. Here’s how to fill it out:
1
Enter the property address
This helps keep your estimate tied to the right property if you request a proposal later.
2
Add your purchase price
Use the total acquisition price (or total cost basis if you have a better number).
3
Select your placed-in-service date
This is usually the date the property was first available for rent (not necessarily your closing date).
4
Choose your property type and asset class
For most rental investors, this will be Residential (1–4 units) or Residential (5+ units), plus an asset class like single family, condo, townhouse, etc.
5
Enter land value
Land isn’t depreciable. Including land value helps estimate the depreciable portion of your purchase.
6
Add renovation cost (if applicable)
Include capital improvements that increase your basis (remodels, additions, major upgrades). Don’t include routine repairs and maintenance.
7
Select bonus depreciation, tax rate, and tax filing year
Bonus depreciation rules can change by year and depend on what qualifies. Your tax rate helps translate depreciation into an estimated tax savings number.
Understanding your results (No Study vs Baseline vs Optimal)
No Study
Standard depreciation estimate without reclassification.
Baseline
Estimated accelerated depreciation ranges if a cost segregation study reclassifies more components into shorter lives.
Optimal
Estimated accelerated depreciation ranges if a cost segregation study reclassifies more components into shorter lives.
Key outputs
Estimated Year 1 Tax Savings
An estimate of how much your taxes could drop in the first year based on additional depreciation deductions (using your selected tax rate).
Estimated Year 1 Accelerated Depreciation
The portion of first-year depreciation that's 'pulled forward' via cost segregation (and bonus depreciation, if selected), above what standard depreciation would typically produce.
Net Depreciation Increase
The difference between accelerated depreciation and standard ('no study') depreciation, showing the incremental deduction created by the cost seg approach.
Deductions 1st 5 years
A cumulative estimate of total depreciation deductions over the first five years under each scenario (standard vs accelerated ranges).
Depreciation Over Time
A longer-term view of how depreciation deductions are spread across future years, illustrating timing differences (more deductions earlier vs later), not necessarily a change in total depreciation over the full life.
Why land value and renovations change depreciation
Even if your property has increased in market value, depreciation is tied to tax basis, and land is not depreciable. A higher land value generally reduces the building/improvement basis used for depreciation calculations.
Renovations can increase depreciable basis and may increase the portion of costs that can be depreciated faster (depending on the type of work). If you’ve done a major remodel or added meaningful improvements, it’s worth including them to get a more realistic estimate.
Frequently asked questions
Is this calculator the same as a CPA depreciation schedule or tax return support?
No. This is a planning estimate. A CPA depreciation schedule and/or an engineered cost segregation study uses detailed asset classification and supporting documentation to determine final numbers.
Does renovation cost count toward depreciation, and should it include labor and materials?
Generally, yes for capital improvements. Include costs that are capitalized (often contractor labor, materials, and related project costs). Routine repairs and maintenance are usually treated differently. Use the renovation cost input to estimate the incremental impact.
Is depreciation different for a duplex vs a single-family rental (or other residential types)?
The basic concept is similar, but the depreciation schedule depends on factors like property classification, how it’s used, and placed-in-service timing. The calculator provides an estimate; final treatment can vary based on the specific facts.
Do I depreciate land value on a rental property?
No, land isn’t depreciable. Only the building and eligible improvements/components are depreciated, which is why entering land value helps produce a more accurate estimate.
What date counts as “placed in service” for a rental property (and why does it matter)?
“Placed in service” is generally when the property is ready and available to rent. This date determines when depreciation starts and can significantly affect the calculator’s Year 1 results.