Cost segregation calculator — estimate Year-1 tax savings in 60 seconds.
Pick a property type, enter a purchase price, set your bracket. We use the same RSMeans 2024 cost data and IRC §168(k) framework as the engineered study itself — so the estimate reflects what an actual report would conclude, not a sales pitch.
This free cost segregation calculator estimates the Year-1 federal tax benefit you'd get from a cost segregation study on your specific property. The calculator applies a property-type-specific reclassification percentage (16–35% of depreciable basis depending on property type) and 100% bonus depreciation under OBBBA to produce a Year-1 deduction and tax-savings estimate. The underlying math matches the engineered study itself — same RSMeans 2024 cost basis, same MACRS framework per Rev. Proc. 87-56. Use this cost segregation study calculator as a "is it worth ordering?" decision tool; the actual study refines the number with regional cost multipliers and component-level analysis.
How the estimate is built.
We start with the building's depreciable basis (purchase price minus an assumed land allocation — 20% residential, 15% commercial), then apply a property-type-specific reclassification percentage based on aggregate component data from completed studies. That reclassified portion is fully deductible in Year 1 under 100% bonus depreciation (OBBBA, signed July 2025). Multiplying by your federal bracket gives the estimated cash benefit.
Real reports vary with property age, condition, geography (RSMeans regional cost multipliers), and finish-level — an actual study can be 10–20% above or below the calculator's estimate. The calculator is intended as a decision tool ("is this big enough to be worth ordering?"), not a substitute for the engineered analysis.
Cost segregation calculator FAQ
Is this cost segregation calculator free?
Yes. No signup, no email required to use. The calculator runs entirely in your browser — enter property type, purchase price, and bracket and the Year-1 estimate appears immediately.
How accurate is the cost segregation calculator?
Within 10–20% of the engineered study result for typical residential properties. The calculator uses aggregate reclassification percentages from completed Cost Seg Smart studies. The actual engineered study refines the number with property-specific component analysis, RSMeans regional cost multipliers, finish-level adjustments, and a 16-check QC gate.
What's the difference between this calculator and a real cost segregation study?
The calculator gives a property-type-bucket estimate in 60 seconds. The engineered study produces a 40+ page CPA-ready PDF with component-level MACRS classification per Rev. Proc. 87-56, audit documentation aligned to the IRS Cost Segregation Audit Techniques Guide (Pub 5653), and a Form 3115 §481(a) section for lookback studies — fileable directly on your tax return.
Does the calculator work for short-term rentals (STR) and Airbnb?
Yes. Short-term rental (STR) is one of the property types and uses higher accelerated reclassification percentages (24–35%) consistent with the FF&E intensity in furnished properties. Combine with the STR loophole (7-day average stay + material participation) to offset W-2 income, not just passive rental income.