Calculators
Rental Property Depreciation Calculator
Calculate US residential rental depreciation over 27.5 years with the mid-month convention, excluding land value.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Preparing rental tax returns
- Estimating tax benefits of a purchase
- Planning for depreciation recapture
- Discussing cost segregation with an adviser
About this tool
What the Rental Property Depreciation Calculator does
In the US, residential rental buildings are depreciated in a straight line over 27.5 years, starting mid-month in the month the property is placed in service. Land is not depreciable, so its value is removed from the basis first. This calculator builds the yearly schedule.
It also works as a rental property depreciation schedule calculator.
Formula
- Depreciable basis = price × (1 − land share) + improvements and buying costs
- Full-year depreciation = basis ÷ 27.5
- First year = full year × (12 − month + 0.5) ÷ 12 (mid-month convention)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Purchase price | $400,000 |
| Land share of value | 20% |
| Capital improvements and buying costs | $15,000 |
| Month placed in service | July |
| Years to show | 10 |
| Result | Value |
|---|---|
| Annual depreciation (full year) | $12,182 |
| First-year depreciation | $5,583 |
| Depreciable basis | $335,000 |
How to read the result
Use your county assessor’s land-to-building split or an appraisal to support the land value.
Depreciation reduces taxable rental income now, but it is recaptured and taxed when you sell unless you use a 1031 exchange.
Not tax advice. Confirm depreciation with a tax professional.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
In the US, 27.5 years for residential rental buildings and 39 years for commercial buildings.
No. Only the building and improvements are depreciable.
Property is treated as placed in service in the middle of the month, so the first month counts as half a month.
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