Calculate IRS straight-line depreciation for residential and commercial rental property.
This calculator uses straight-line depreciation with mid-month convention per IRS Pub 946. Cost segregation estimates are simplified. Actual savings depend on your tax bracket and filing status. This is not tax advice — consult a CPA.
About this tool
Calculate your annual property depreciation deduction using the IRS schedule. Free, accurate.
What Is the Property Depreciation?
The Property Depreciation is a free browser-based real estate calculator that analyzes property depreciation calculator metrics for property investment decisions. All computations run locally in your browser — no property details, financial information, or location data is ever uploaded to a server. The tool uses current rental property depreciation rates, tax implications, and market assumptions updated for 2026. It provides detailed breakdowns including cap rate, cash-on-cash return, NOI, and amortization schedules that would typically require paid real estate analysis software.
Who Should Use This Tool?
Real estate investors use this tool to screen property depreciation calculator opportunities before committing to detailed analysis. First-time homebuyers compare mortgage scenarios and understand total cost of ownership. Property managers evaluate rental property depreciation performance across portfolio holdings. House hackers analyze multi-family properties for live-in-then-rent strategies. Real estate agents prepare client presentations with professional financial breakdowns. Students learning real estate investing use the transparent calculations to understand how cap rates, cash flow, and appreciation actually work together.
How to Use the Property Depreciation
Enter the property details — purchase price, down payment, loan terms, rental income, and expenses. The tool calculates property depreciation calculator metrics instantly as you type, showing cap rate, cash-on-cash return, monthly cash flow, and annual projections. Use the comparison mode to evaluate multiple properties side by side. The results panel displays a 30-year projection including equity buildup and tax benefits. Adjust any input to run sensitivity analysis on rent, vacancy, or interest rates. All data stays in your browser; nothing is saved or transmitted.
Frequently asked
How is residential rental depreciation calculated?
The IRS requires straight-line depreciation over 27.5 years for residential property (39 years for commercial). Divide your building basis (purchase price minus land value) by 27.5 to get your annual deduction. A $300,000 building with $60,000 land yields $8,727 per year in depreciation expense.
What happens to depreciation when I sell the property?
The IRS recaptures depreciation at 25% tax on the total amount you deducted over the ownership period. If you claimed $87,270 in depreciation over 10 years, you owe roughly $21,818 in recapture tax at sale. This tool projects both the annual benefit and the eventual recapture liability.
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