PropdealcalcRental property depreciation calculator
In many countries you can deduct the wear on a rental building from your taxable rental income each year. Land does not wear out, so only the building counts.
$
%
From the tax assessment or an appraisal.$
1 = January.
Yearly depreciation$8,727
First year$8,364Part year
Depreciable basis$240,000
| Year | Depreciation | Left to depreciate |
|---|---|---|
| 1 | $8,364 | $231,636 |
| 2 | $8,727 | $222,909 |
| 3 | $8,727 | $214,182 |
| 4 | $8,727 | $205,455 |
| 5 | $8,727 | $196,727 |
| 6 | $8,727 | $188,000 |
| 7 | $8,727 | $179,273 |
| 8 | $8,727 | $170,545 |
| 9 | $8,727 | $161,818 |
| 10 | $8,727 | $153,091 |
| 11 | $8,727 | $144,364 |
| 12 | $8,727 | $135,636 |
| 13 | $8,727 | $126,909 |
| 14 | $8,727 | $118,182 |
| 15 | $8,727 | $109,455 |
| 16 | $8,727 | $100,727 |
| 17 | $8,727 | $92,000 |
| 18 | $8,727 | $83,273 |
| 19 | $8,727 | $74,545 |
| 20 | $8,727 | $65,818 |
| 21 | $8,727 | $57,091 |
| 22 | $8,727 | $48,364 |
| 23 | $8,727 | $39,636 |
| 24 | $8,727 | $30,909 |
| 25 | $8,727 | $22,182 |
| 26 | $8,727 | $13,455 |
| 27 | $8,727 | $4,727 |
| 28 | $4,727 | $0 |
How it works in the US
Residential rental property is depreciated straight-line over 27.5 years, commercial property over 39 years, using the mid-month convention: the first year counts from the middle of the month the property is ready to rent. The basis is the purchase price plus buying costs and improvements, minus the value of the land.
Other countries
Rules differ widely: some countries allow a fixed yearly percentage of the building cost, others allow little or no depreciation on residential property. Enter the period that applies to you, and check with a tax adviser.
More real estate calculators
Rental property deal analyzerCash flow, cap rate, cash-on-cash, DSCR, IRR and a year-by-year projection.Cap rate calculatorCapitalization rate from income and price, or the value a cap rate implies.Cash-on-cash returnThe yearly cash you get back on the cash you put in.NOI calculatorNet operating income from rent, vacancy and operating expenses.DSCR calculatorDebt service coverage ratio, and the loan a target ratio supports.GRM calculatorGross rent multiplier, and the price a market multiplier implies.Fix and flip calculatorProfit, ROI and the 70% rule for a flip.BRRRR calculatorCash left in the deal after the refinance and the return on it.Airbnb and short-term rentalMonthly revenue, costs, cash flow and break-even occupancy.