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Rental Property Depreciation Calculator

Estimate the yearly tax depreciation on a US rental property. Enter the purchase price, the land portion, any capital improvements, the property type (27.5-year residential or 39-year commercial) and the month it was placed in service — and get the depreciable basis, the annual, first-year (mid-month) and monthly depreciation, the tax savings at your rate, a year-by-year schedule and a first-year-by-month table, with a chart and a downloadable PDF. Based on IRS MACRS straight-line depreciation.

US dollars, IRS MACRS General Depreciation System. Depreciable basis = purchase price − land value + capital improvements. Residential rental property depreciates straight-line over 27.5 years and commercial over 39 years, with a mid-month convention: the first-year factor = (12.5 − month placed in service) ÷ 12 ÷ recovery years. Land is never depreciated. Depreciation is recaptured (taxed at up to 25%) when you sell, and the tax-savings figure assumes the deduction offsets income at your marginal rate. Verify the land-to-building split and your own tax situation with a CPA or tax advisor — this is an estimate, not tax advice.
1 Cost basis
$
%
$
Depreciable basis = purchase price − land value + capital improvements.
2 Depreciation schedule
Residential
27.5 yr
Commercial
39 yr
Annual depreciation = depreciable basis ÷ recovery period; the first year is prorated mid-month.
3 Tax & holding
%
yr
Depreciation is recaptured (taxed, up to 25%) when you sell — this is an estimate, not tax advice.
Annual depreciation
— / yr
Enter the property, then click Calculate
First-year depreciation
—
mid-month
Depreciable basis
—
building only
Annual tax savings
—
at your rate
Depreciation summary
—
Enter the property
We work out the depreciable basis, the yearly and first-year depreciation, and the tax savings it can shelter.
Depreciation breakdown
Purchase price—
Land value (not depreciable)—
Depreciable basis—
Recovery period—
Annual depreciation—
First-year depreciation—
Monthly depreciation—
Annual tax savings—
Total over hold period—
Remaining basis—
Result summary
Annual depreciation —
First-year —
Depreciable basis —
Annual tax savings —
Monthly —
Total over hold —
Depreciation schedule (first years)
YearDepreciationCumulativeRemaining basis
Enter a property to see the schedule
First-year by month placed in service
Month placedFirst-year %First-year $Tax savings
Enter a property to compare
Visualizations
Depreciation taken by year (year 1 highlighted)