Depreciation calculators split into two camps: software that tracks straight-line depreciation for your books, and studies that break out the accelerated pieces so you actually use the tax code the way it's written. Stessa wins overall for portfolio landlords who want depreciation tracked automatically. BiggerPockets' Rental Property Calculator wins for underwriting a deal before you close. The IRS Form 4562 worksheet is the budget option — no subscription needed. And for anyone holding a property worth $500K or more, a professional cost segregation study beats every calculator on this list.
- Stessa is the best depreciation calculator for rental property investors managing 3+ units in 2026.
- A cost segregation study, not software, is the right call once a property crosses roughly $500K in basis.
- Residential rentals depreciate over 27.5 years straight-line; bonus depreciation drops to 20% in 2026 under the TCJA phase-down.
- IRS Form 4562 worksheets handle a single property fine but break down fast once you add renovations or a second unit.
- Every calculator on this list still needs a human to separate land value from building value correctly.
Why this matters
Most landlords either skip depreciation entirely or let their preparer plug a generic 27.5-year straight-line number into the return without checking whether a faster method would free up more cash this year. A calculator that gets the land-to-building split wrong, or ignores bonus depreciation, can cost you thousands in deductions you were legally entitled to take.
Good bookkeeping software for real estate investors feeds depreciation numbers straight into your books monthly instead of forcing a scramble every March. That matters more in 2026 than it did a few years ago, because bonus depreciation is down to 20% — the easy 100% write-off years are gone, and getting the calculation right now takes more precision, not less.
What makes the best depreciation calculator
- Handles both straight-line (27.5-year residential, 39-year commercial) and accelerated MACRS schedules
- Separates land value from building value instead of defaulting to a flat 80/20 guess
- Tracks basis additions — new roof, HVAC, appliances — and recalculates remaining depreciation each year
- Outputs a schedule your preparer can drop straight into Form 4562
- Flags recapture exposure so you're not blindsided by unrecaptured §1250 gain at sale
- Syncs with your books so depreciation posts monthly instead of once a year
Depreciation calculators at a glance
| Tool | Best for | Standout feature | Key limitation |
|---|---|---|---|
| Stessa | Portfolio landlords | Auto-syncs bank feeds to depreciation schedule | Weak on cost segregation add-backs |
| REI Hub | GAAP-consistent books | Full MACRS schedule built into the ledger | Steeper setup than consumer apps |
| Baselane | Banking + depreciation in one login | Combines rent collection with basis tracking | Depreciation reporting is basic, not granular |
| BiggerPockets Rental Property Calculator | Underwriting before you buy | Fast pre-purchase depreciation estimate | Not built for ongoing tax filing |
| IRS Form 4562 worksheet | Single-property DIY filers | Full manual control, no subscription | Breaks down past one or two properties |
| Professional cost segregation study | High-value properties | Reclassifies components into 5, 7, 15-year buckets | Requires a specialist, not a calculator app |
1. Stessa: best depreciation calculator for portfolio landlords
Stessa pulls transactions from linked bank accounts and builds a depreciation schedule alongside your income statement, so you see basis, accumulated depreciation, and remaining useful life without touching a spreadsheet. It's built specifically for buy-and-hold investors running multiple doors, not single-property hobbyists.
Stessa pros:
- Automatic bank feed sync keeps basis additions current
- Portfolio-level view across multiple properties
- Clean handoff of numbers to your CPA at tax time
Stessa cons:
- Doesn't model cost segregation component breakouts
- Land/building split still needs manual verification against your county assessor
Best for: landlords with 3 or more units who want depreciation tracked without manual entry. Verdict: Buy.
2. REI Hub: best depreciation calculator for GAAP-consistent books
REI Hub is built around real estate accounting standards, with MACRS schedules embedded directly in the general ledger rather than bolted on as a side report. It's the choice for investors who eventually want lender-ready or investor-ready financials, not just a tax number.
REI Hub pros:
- Full double-entry books with depreciation baked in
- Handles multiple entities and properties cleanly
- Exports schedules formatted for tax prep
REI Hub cons:
- Setup takes longer than a plug-and-play app
- Overkill if you own one rental
Best for: investors who need investor-grade or lender-grade financials, not just a tax estimate. Verdict: Buy.
3. Baselane: best depreciation calculator for landlords who want banking and tracking combined
Baselane bundles landlord banking, rent collection, and basic depreciation tracking under one login, which appeals to owners who'd rather consolidate tools than juggle four logins for four jobs.
Baselane pros:
- One login for banking, rent collection, and basis tracking
- Useful for landlords tired of stitching together separate apps
- Reasonable entry point for a first or second rental
Baselane cons:
- Depreciation reporting is thinner than dedicated accounting tools
- Not built for complex basis adjustments after renovations
Best for: landlords who want fewer logins, not deeper depreciation detail. Verdict: Hold — fine as a starting point, outgrow it past three properties.
4. BiggerPockets Rental Property Calculator: best for underwriting before you buy
This one isn't a bookkeeping tool — it's a pre-purchase estimator. Plug in purchase price, land value, and closing costs, and it spits out a rough annual depreciation figure so you can model cash flow before you sign anything.
BiggerPockets pros:
- Fast estimate during deal analysis
- No account or bookkeeping commitment required
- Good gut-check against a seller's or agent's numbers
BiggerPockets cons:
- Estimate only — not a filing-ready schedule
- Doesn't account for cost segregation or bonus depreciation nuance
Best for: running numbers on a deal before closing, not for ongoing tax filing. Verdict: Buy for underwriting, Skip for actual tax prep.
5. IRS Form 4562 worksheet: best budget depreciation calculator
The manual route: pull the MACRS tables from IRS Publication 946, calculate your building basis, and work through Form 4562 by hand or in a spreadsheet. It's the same math every calculator above is automating.
Form 4562 worksheet pros:
- No subscription, no data-sharing with a third-party app
- Full control over every assumption you make
- Fine for a single property with no unusual basis events
Form 4562 worksheet cons:
- Errors compound fast once you add a second property or a renovation
- No automatic recapture tracking at sale
Best for: one rental, no recent capital improvements, and a filer comfortable reading IRS tables. Verdict: Hold for simple cases, Wait on this once your portfolio grows.
6. A professional cost segregation study: best for high-value properties
None of the calculators above touch what a cost segregation study does: an engineer or specialist walks the property and reclassifies components — flooring, cabinetry, parking lot, certain electrical — into 5, 7, and 15-year buckets instead of one 27.5-year bucket. Combined with the 20% bonus depreciation rate still in effect for 2026, that reclassification can pull tens of thousands in deductions forward into year one.
Cost segregation study pros:
- Accelerates deductions years ahead of straight-line schedules
- Works alongside bonus depreciation for a larger first-year write-off
- Pays for itself many times over on properties with six-figure basis
Cost segregation study cons:
- Not worth the engineering fee on a $150K single-family rental
- Requires coordination with a preparer who tracks the recapture exposure it creates
Best for: rental or commercial property with a basis north of roughly $500K. Verdict: Buy — see cost segregation study companies for landlords and check what a cost segregation study costs before committing.
How we ranked
Each tool was scored against the criteria above: schedule accuracy, land/building separation, basis tracking, Form 4562 output, recapture flagging, and bookkeeping sync. Stessa and REI Hub scored highest on ongoing tracking; the cost segregation study scored highest on total deduction value for larger properties, which is why it earns its own slot rather than competing head-to-head with the software tools.
“A depreciation calculator gets your straight-line number right. It won't tell you that a cost segregation study could have moved $40,000 into year one.”
Which depreciation calculator should you choose?
If you own one rental with no recent renovations, the IRS Form 4562 worksheet covers you at no cost. If you're running a portfolio of three or more units, Stessa or REI Hub save hours every quarter. If you're underwriting a deal, run it through BiggerPockets' calculator first. And if any single property carries a basis over roughly $500K, stop calculating and get a cost segregation study — it's the one item on this list that changes your actual tax bill instead of just organizing the paperwork.
Not sure which route fits your properties?
Get a straight answer on depreciation, cost segregation, and your 2026 return.
FAQ
What's the best depreciation calculator for rental property in 2026?
Stessa is the best depreciation calculator for rental property investors managing multiple units in 2026, because it syncs bank feeds automatically into a running depreciation schedule. Single-property owners can get by with the IRS Form 4562 worksheet instead.
How is rental property depreciation calculated?
Residential rental property depreciates straight-line over 27.5 years, based on the building's basis minus land value. Commercial property uses a 39-year schedule; both exclude land, which is never depreciable.
Is bonus depreciation still available in 2026?
Yes, but at a reduced rate. The TCJA phase-down brings bonus depreciation down to 20% in 2026, compared to 100% in 2022, so accelerated deductions are smaller than they were a few years ago.
Do I need a cost segregation study for a small rental?
Usually not. Engineering fees for a cost segregation study rarely pencil out below roughly $500K in basis — straight-line depreciation or a standard software calculator is enough for smaller properties.
What happens to depreciation when I sell the property?
You owe unrecaptured §1250 gain tax on the depreciation you claimed (or should have claimed), taxed at up to 25% regardless of your regular capital gains rate. This applies even if you never used a depreciation calculator to claim it.
Can software file Form 4562 for me?
Tools like Stessa and REI Hub generate depreciation schedules formatted for Form 4562, but a preparer still needs to file the form as part of your return. None of the calculators on this list file the form independently.
How does land value affect my depreciation calculation?
Land is never depreciable, so overstating land value shrinks your annual deduction. Most calculators default to a rough 80/20 building-to-land split, which is worth checking against your county assessor's actual allocation.
Can I switch from straight-line to a cost segregation study later?
Yes. A study performed after you've already been depreciating the property triggers a change in accounting method (Form 3115) rather than an amended return, letting you catch up the missed deductions in the current year.
One last thing
Most landlords who run their own numbers overstate land value because county assessor splits are conservative and easy to copy without checking. Pull the actual improvement ratio from your property tax bill before you trust any calculator's default 80/20 assumption — a 5-point swing in that split changes your annual deduction by real money every single year you hold the property.
