Depreciation Calculator for Real Estate

The Depreciation Calculator for Real Estate helps you calculate property depreciation based on IRS rules for residential and commercial real estate. It lets you account for land value, choose the correct property type, and view annual deductions year by year.

Whether you’re an investor, tax filer, or just planning long-term asset value, this tool makes it easy to run the numbers without guesswork.

Options
Show Yearly Breakdown
Round Values

How to Use:

  1. Enter the Property Cost and the Land Value (land isn’t depreciated).
  2. Enter the Start Year when depreciation begins.
  3. Select the Property Type:
    • Residential: 27.5 years
    • Commercial: 39 years
  4. Use the Options toggles to:
    • Show or hide the Yearly Breakdown
    • Enable or disable Rounded Values
  5. Results update live and flash when values change.
  6. Export or copy results using the buttons at the bottom.

What Depreciation Calculator for Real Estate can do:

The Depreciation Calculator for Real Estate subtracts the land value from the property cost to get the depreciable basis. Then it spreads that value across the appropriate number of years depending on the property type. You’ll see the annual deduction, a breakdown by year, and the total depreciation at the end.

Residential real estate uses 27.5 years of straight-line depreciation, while commercial property uses 39 years. The tool handles partial years too, giving you an accurate final year adjustment.

Example:

Settings: Property Cost: 300000, Land Value: 50000, Start Year: 2023 Mode: Residential Show Breakdown: ON, Round Values: OFF

Output:

Depreciable Basis: 250000
Annual Depreciation: 9090.91
Useful Life: 27.5 years

Breakdown:
Year 2023: 9090.91
Year 2024: 9090.91
...
Year 2049: 9090.91
Year 2050: 9090.91
Year 2051: 9090.91
Year 2052: 9090.91
Year 2053: 9090.91
Year 2054: 4545.45

Total Depreciation: 250000.00

Common Use Cases:

Use this tool for rental properties, commercial buildings, or any depreciable real estate. It’s great for estimating tax deductions, forecasting returns, or ensuring compliance with IRS schedules. Real estate investors, bookkeepers, and CPAs will find it especially helpful.

Useful Tools & Suggestions:

If you’re working with property, the Straight-Line Depreciation Calculator is a good companion it’s commonly used in real estate since it spreads costs evenly across years. You might also look at the Sum-of-the-Years’ Digits Depreciation Tool if you want a faster write-off early on, which can be useful for certain tax strategies.

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