A CPA’s Walkthrough: Behind the Numbers in Our Cost Segregation Calculator
Behind the Numbers in Our Cost Segregation Calculator
If you're a real estate investor, you've probably heard someone mention cost segregation. Maybe you’ve even looked into it, only to hit a wall when trying to estimate your depreciation benefits.
That’s exactly why we built the Maven Cost Segregation Calculator.
It’s designed to give you a fast, realistic estimate of what your tax savings might look like — based on your property type, tax rate, and a few other key variables.
But unlike most tools out there, this one wasn’t built by a random coder. It was built by a CPA and cost segregation engineers who understand how to model these studies in real life.
In this post, I want to walk you through our calculator — how it works, what the numbers mean, and where to go if you want something more personalized.
Let’s dive in.
That’s exactly why we built the Maven Cost Segregation Calculator.
It’s designed to give you a fast, realistic estimate of what your tax savings might look like — based on your property type, tax rate, and a few other key variables.
But unlike most tools out there, this one wasn’t built by a random coder. It was built by a CPA and cost segregation engineers who understand how to model these studies in real life.
In this post, I want to walk you through our calculator — how it works, what the numbers mean, and where to go if you want something more personalized.
Let’s dive in.
Built by Investors, for Investors
At Maven Cost Segregation, we’ve worked on cost segregation studies across nearly every asset class — single-family homes, multifamily buildings, commercial offices, storage facilities, and more.
That experience gave us a large enough data set to build a calculator that’s both easy to use and rooted in real-world averages.
We wanted investors like you to have a tool to:
That experience gave us a large enough data set to build a calculator that’s both easy to use and rooted in real-world averages.
We wanted investors like you to have a tool to:
- Play around with real numbersbefore committing to a full study
- Compare scenarios(short-term vs long-term rental, for example)
- Understand how depreciation schedules work over time
But the calculator is just one piece. To use it effectively, you need to understand what each input really means.
What the Calculator Asks For — And Why
Here’s a quick breakdown of the key inputs you’ll be prompted for:
Property Type & Asset Class
Whether you own a single-family home, an apartment complex, or a self-storage facility, asset class matters — it affects how we estimate reallocation percentages (what’s 5-year vs 15-year vs 27.5 or 39-year life).
Depreciable Basis
This is purchase price + capital improvements - land value.
You can estimate 20% of your purchase price as land by default, but if you have a tax assessment or appraisal, that’ll help sharpen your numbers.
You can estimate 20% of your purchase price as land by default, but if you have a tax assessment or appraisal, that’ll help sharpen your numbers.
Placed-in-Service Date
This is the day your property was both available for rent and being actively marketed. It determines what bonus depreciation percentage applies for that tax year.
Tax Rate
Enter your marginal federal tax rate. If you don’t know it, pull up your last return or ask your CPA. The calculator uses this to estimate the actual dollar impact of the accelerated depreciation.
Lease Type
Here’s where things get interesting — because this changes your default depreciation timeline.
- Residential long-term and mid-term rentals:27.5 years
- Short-term rentals:
- Nonresidential properties:39 years
That lease-type toggle lets you see just how much the structure of your rental business affects your tax strategy.
Understanding the Output: Time Value of Money in Action
Once you hit “Generate Calculation,” you’ll get a visual output that compares:
- Straight-line depreciation(no cost seg)
- Accelerated depreciation(with a study)
Let’s say your depreciable basis is $1M. Without cost seg, you’d take roughly $35K/year for 27.5 years.
With a study, you might front-load $200K+ in year one — depending on asset class and bonus depreciation.
You’ll notice that the total depreciation doesn’t change — we’re still depreciating the same $1M — but the timing changes dramatically.
That front-loaded depreciation could translate to $60K–$70K in real tax savings in year one if you’re in the 37% bracket.
With a study, you might front-load $200K+ in year one — depending on asset class and bonus depreciation.
You’ll notice that the total depreciation doesn’t change — we’re still depreciating the same $1M — but the timing changes dramatically.
That front-loaded depreciation could translate to $60K–$70K in real tax savings in year one if you’re in the 37% bracket.
Important Disclaimer: It’s Still an Estimate
The calculator is meant to give you a directional sense of what’s possible — not a guaranteed outcome.
It’s based on averages from our internal data across hundreds of studies. But every property is different. To get a tailored proposal with your actual depreciation schedule, you can request one right inside the calculator tool.
It’s free. No strings attached. And you’ll get a clear breakdown of:
It’s based on averages from our internal data across hundreds of studies. But every property is different. To get a tailored proposal with your actual depreciation schedule, you can request one right inside the calculator tool.
It’s free. No strings attached. And you’ll get a clear breakdown of:
- Estimated depreciation per year
- Estimated tax savings
- A price quote for the cost seg study itself
How Does the Home Office Deduction Work—and Who Qualifies?
Click here to try the Maven Cost Segregation Calculator
Whether you’re evaluating a new property or looking to re-run numbers on one you already own, this is a great first step.
Want to see a full walkthrough of the calculator in action?
Click the image below to watch the full video where I give an in-depth breakdown of how to use the calculator.
Whether you’re evaluating a new property or looking to re-run numbers on one you already own, this is a great first step.
Want to see a full walkthrough of the calculator in action?
Click the image below to watch the full video where I give an in-depth breakdown of how to use the calculator.
About the Author
Sean Graham, CPA specializes in cost segregation, tax depreciation, and real estate tax savings. As the Chief Technical CPA at Maven Cost Segregation: Tax Advisors, he has overseen 1000+ cost segregation studies, helping investors maximize deductions.