Rental Property Depreciation Calculator

Straight-line 27.5-year residential depreciation with the mid-month convention.

Purchase price

What you paid for the property.Capitalized closing costs

Some purchase fees can be added to your cost for taxes. Ask a tax pro which ones.Capital improvements

Big upgrades that add value or life, like a new roof. Not small repairs.Land value share

Land can’t be depreciated, only the building. Your property tax bill often splits land and building value.Month placed in service (1–12)

The month the rental was ready and offered for rent (1 = January).

What do these mean?

Example: $275,000 building value ÷ 27.5 years = $10,000 a year deduction. Source: IRS Publication 527. Not tax advice.

Your results, explained

Annual depreciation: Tax deduction each full year. Homes rented to people are spread over 27.5 years (IRS Publication 527).
First-year depreciation: The first year is smaller because the IRS counts from the middle of the month you start.
Depreciable basis: The part of your cost that can be depreciated: price + fees + upgrades − land.

Estimates only. Not financial, tax or legal advice.

Results

Annual depreciation—

First-year depreciation—

Depreciable basis—

Estimates for educational purposes only. Not legal, tax or financial advice. Results depend on your inputs and are provided as is. See our Terms.

How it works

Residential rental buildings are depreciated over 27.5 years using straight-line and the mid-month convention. Land is not depreciable. This is an estimate, not tax advice — confirm with a tax professional.

The formula

Basis = (price + closing + improvements) × (1 − land %)
Annual = basis ÷ 27.5
Year 1 = annual × (12 − month + 0.5) ÷ 12  (mid-month)

FAQ

How do I find land value?

Your property tax assessment often splits land and improvement value; you can apply that ratio to your price.

What is the mid-month convention?

The property is treated as placed in service in the middle of the month, so you get half a month for the first month.

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Rental Property Depreciation Calculator

Your results, explained

Results

How it works

The formula

FAQ

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