Cost Segregation ROI Calculator
The tax savings from cost segregation are the same regardless of which firm you hire. The only thing that changes is what you pay for the study -- and therefore your ROI. Plug in your numbers below.
These are estimates for planning purposes. Your actual results depend on property age, condition, location, and construction type. Always have your CPA review any cost segregation study before filing -- they'll confirm the methodology works for your specific tax situation.
Your Estimated Tax Savings
ROI by Provider Price
For standard residential properties, tax savings are often comparable across providers. Study cost is what changes your ROI.
| Study Cost | Example Providers | Your Tax Savings | Net Benefit | ROI |
|---|
For many standard residential properties, tax savings may be comparable across providers using similar methodology and cost data. Scope, documentation, and support can differ. The study cost is typically the largest variable in your ROI.
Visual: ROI at Every Price Point
Your $-- in tax savings, divided by the study cost.
What this means
How the math works
Where do the savings estimates come from?
We use simplified industry averages for the percentage of building value that can be reclassified to shorter MACRS lives (5-year, 7-year, and 15-year property). These percentages come from analyzing thousands of cost segregation studies across property types. Your actual study results may vary based on property age, condition, quality, and location -- but the estimates here are in the right ballpark for planning purposes.
Why is ROI so sensitive to study cost?
Most providers follow the same IRS methodology (the Audit Techniques Guide) and use similar cost databases (RSMeans, Marshall & Swift). For many standard residential properties, the practical tax outcome may be similar across providers, though scope, documentation depth, engineering process, and support can differ. Because the tax savings are often comparable, the study cost becomes the biggest variable in your ROI calculation. Providers in the $795-$1,200 range — such as Cost Seg Smart and R.E. Cost Seg — produce the highest ROI multiples in our analysis, though the tradeoff is typically no in-person site visit.
Does this include state tax savings?
If you select "37% + state (~40%)" as your tax bracket, yes. Otherwise the savings shown are federal only. Most states that have an income tax conform to federal depreciation rules, so your state savings would be on top of the federal number shown.
Estimated Tax Savings by Property Type
Cost segregation reclassifies 20-35% of a building's cost basis from the standard 27.5-year or 39-year depreciation schedule into 5-year, 7-year, and 15-year property classes. With 100% bonus depreciation restored permanently under the One Big Beautiful Bill Act (July 2025), that reclassified portion is deducted entirely in year one. On a $500,000 short-term rental, that typically means $128,000 in accelerated depreciation and $47,360 in first-year tax savings at the 37% federal bracket. Single-family rentals reclassify less (around 25% of basis) because they have fewer personal property components like furniture and fixtures, while restaurants reclassify the most (around 35%) due to specialized kitchen equipment, ventilation systems, and tenant improvements. The table below shows estimated year-one savings across six common property types at typical purchase prices.
| Property Type | Purchase Price | Building Basis | Reclassified | Yr-1 Deduction | Tax Savings (37%) |
|---|---|---|---|---|---|
| Short-Term Rental | $500,000 | $400,000 | 32% | $128,000 | $47,360 |
| Single-Family Rental | $400,000 | $320,000 | 25% | $80,000 | $29,600 |
| Duplex | $500,000 | $410,000 | 26% | $106,600 | $39,442 |
| Multifamily (12 units) | $2,000,000 | $1,700,000 | 24% | $408,000 | $150,960 |
| Office | $1,500,000 | $1,200,000 | 28% | $336,000 | $124,320 |
| Restaurant | $800,000 | $640,000 | 35% | $224,000 | $82,880 |
All examples assume 100% bonus depreciation (2025+) and a 37% federal tax bracket. Land is excluded at 15-20% of purchase price depending on property type. Reclassification percentages are industry averages from analyzing thousands of completed studies -- your actual results depend on property age, condition, construction type, and location. Use the calculator above to estimate savings for your specific property, or compare provider pricing to see what a study costs. For a more detailed pricing breakdown by property type, see this pricing guide.