Home›Cost Segregation Calculator

🔍 Cost Segregation Calculator

Analyze cost segregation study ROI: Year 1 deduction uplift, net savings after study cost, payback period, and long-term depreciation schedule.

📍 Property Address (optional)
InputsYour Numbers
Property Details
Purchase Price?
$
Land Value?
$
Year Placed in Service?
Cost Segregation Results
5-Year Personal Property ($)?
$
7-Year Personal Property ($)?
$
15-Year Land Improvements ($)?
$
Tax Details
Federal Tax Bracket %?
%
State Conforms to Bonus? (0=No)?
%
Study Cost ($)?
$
As-Is AnalysisCurrent
Enter values to see results
Year 1 Deduction
--
with cost seg
Year 1 Tax Savings
--
net of study cost
Study ROI
--
savings / study cost
Years to Payback Study
--
study cost / yr1 savings
Depreciation Comparison
Without Cost Seg (27.5-yr/yr)--
With Cost Seg Year 1--
Additional Year 1 Deduction--
Additional Tax Savings (yr1)--
Study Economics
Gross Tax Savings (yr1)--
Study Cost--
Net Year 1 Benefit--
Payback Period--
5-Year Total Benefit--
Pro FormaAfter Plan
Enter pro forma values
10-Year Deduction Total
--
cost seg vs standard
10-Year Tax Savings
--
extra from cost seg
IRR on Study Cost
--
return on study investment
Break-Even Property Value
--
min value for study ROI>1
Long-Term Depreciation Schedule
Year 1 (bonus + std)--
Years 2-5 (std only)--
Years 6+ (std only)--
Total Deductions (life of loan)--

📄 Email My Free Report

Full analysis sent to your inbox instantly.

1
Enter Property & Land
Cost segregation works on the building value (price minus land). Larger buildings generate more reclassifiable components.
2
Enter Cost Seg Reclassification
A professional study identifies 5, 7, and 15-year property. Typical residential reclassification is 15-25% of building value. Enter your study results.
3
Set the Tax Year
Bonus depreciation applies to reclassified property at the current-year rate. In 2025, bonus is 40%. In 2026, it drops to 20%.
4
Enter Study Cost
A qualified cost seg study typically costs $4,000-10,000 depending on property size. The calculator shows net benefit after the study cost.
5
Check the ROI
Study ROI = (Year 1 tax savings - study cost) / study cost. A $6,500 study that generates $24K in tax savings has a 269% ROI. Typically worth it above $400-500K property value.
6
Understand the Timing
Cost seg accelerates depreciation but doesn't increase total deductions. You take more in Year 1 and less in later years. The benefit is the time value of money and potentially lower future rates.

A cost segregation study is a tax analysis that identifies building components that can be depreciated on accelerated 5, 7, or 15-year schedules instead of the standard 27.5-year (residential) or 39-year (commercial) schedule.


Combined with bonus depreciation, this can convert a property that would generate $15,000/yr in standard depreciation into a $60,000+ Year 1 deduction. At a 32% tax bracket, that's the difference between $4,800 and $19,200 in Year 1 tax savings.


Cost segregation is generally most economical for properties valued above $400,000-500,000. Below that, the study cost may eat up too much of the benefit. Studies should be performed by engineers with IRS-compliant methodology.

📄 Email My Report

Full analysis sent free to your inbox.