Rental Property Depreciation Calculator
Last updated: November 5, 2026
Estimate annual straight-line depreciation for residential rental property.
Estimated annual depreciation
—
- Depreciable basis: —
- Monthly depreciation: —
- Nondepreciable land value: —
On this page
Quick summary: Estimate annual straight-line depreciation for residential rental property.
Read the complete guide
Updated reference sections in this guide are in English.
What this calculator estimates
Estimate annual straight-line depreciation for residential rental property.
How to use it
Enter Property purchase price ($); Land value excluded from depreciation ($); Capital improvements added to basis ($); Recovery period (years); Rental-use percentage (%). Select Calculate to update the results.
How the calculation works
Depreciable basis subtracts land, adds entered improvements and applies rental-use percentage, then divides by the entered recovery period.
Worked example: starting scenario
| Property purchase price ($) | 450000 |
|---|---|
| Land value excluded from depreciation ($) | 90000 |
| Capital improvements added to basis ($) | 30000 |
| Recovery period (years) | 27.5 |
| Rental-use percentage (%) | 100 |
| Estimated annual depreciation | $14,181.82 |
|---|---|
| Depreciable basis | $390,000.00 |
| Monthly depreciation | $1,181.82 |
| Nondepreciable land value | $90,000.00 |
Important limitations
Closing costs, placed-in-service dates, personal use and component lives require tax-specific treatment.
A full-year straight-line planning amount
The recovery period is a user input, not a classification decision. Dividing basis by that period gives a simple full-year amount; dividing again by 12 does not apply the US mid-month convention or a placed-in-service date. Land is excluded, and personal use reduces the entered basis by the rental-use percentage. Separate components or later improvements can need separate schedules.