Building Depreciation Calculator

Work out building depreciation instantly with clear inputs, formula shown and shareable results.

About Building Depreciation Calculator

Straight line depreciation spreads the difference between construction cost and residual value evenly over the useful life. Valuers use it for the cost approach: depreciated replacement cost is what it would cost to rebuild today, less accumulated depreciation for age and condition.

Formulas

Annual depreciation

Annual = (cost - residual value) / useful life

Depreciated value

Value = cost - annual x age, floored at the residual value

Worked example

With the default values below, Building Depreciation Calculator returns Depreciated replacement value of $4,920,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original construction costminimum 0.01: 6,000,000
Age of buildingminimum 0 years: 12 years
Useful lifeminimum 1 years: 60 years
Residual valueaccepts 0–50 %: 10 %

Results

Depreciated replacement value: $4,920,000.00
Annual depreciation: $90,000.00
Accumulated depreciation: $1,080,000.00
Depreciation to date: 18.00% %

Step by step

1Values used
2Annual depreciation
3Depreciated value
4Depreciated replacement value= 4,920,000.00
5Annual depreciation= 90,000.00
6Accumulated depreciation= 1,080,000.00
7Depreciation to date= 18.00 %

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Building Depreciation figure worked out?

Annual = (cost - residual value) / useful life. Straight line depreciation spreads the difference between construction cost and residual value evenly over the useful life.

Does depreciation apply to the land?

No. Land is not depreciated because it does not wear out. Only the structure and its services depreciate, which is why the split between land and building value matters for tax.

What values do I need to enter?

This calculator takes 4 inputs: Original construction cost, Age of building, Useful life, Residual value. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.