Use this real-estate calculation for a transparent preliminary valuation, financing, income, expense, area, tax, return, or market scenario with explicit dates and assumptions.

Improvement Cost (currency)

Required number input.

Salvage Value (currency)

Required number input.

Useful Life Years (year)

Required number input.

Annual straight-line depreciation of improvements over useful life; excludes land value. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.^[1]

Annual Depreciation (currency/year)

The resulting annual depreciation returned as a number.

• Real properties differ in location, condition, leases, zoning, title, taxes, financing, vacancy, capital needs, environmental risk, and market liquidity. Forecasts and ratios are not appraisals, loan offers, tax opinions, or investment advice.
• Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.

Reconcile assumptions to leases, operating statements, surveys, tax records, lender terms, comparable evidence, and physical inspection; test downside scenarios and obtain qualified local advice.

• Cost Approach Value

  Simplified cost-approach indication: land value plus replacement cost of improvements less accrued depreciation.

• Effective Age

  Simple effective age estimate from replacement cost and accumulated depreciation; assumes straight-line economic life.

• Cap Rate Calculator

  Compute the real-estate capitalization rate from annual net operating income and property value.