Cost Segregation ROI Calculator
Tax savings from cost segregation are roughly the same regardless of which firm you hire — methodology and IRS rules don't change. What changes is the study cost, and therefore the ROI. The full table below shows all 27 providers we track. Adjust your property below to update the numbers.
ROI by Provider — All 27
Defaults shown for a $500K short-term rental at the 37% bracket. Change the inputs below to update.
| Rank | Provider | Study Cost | Your Tax Savings | Net Benefit | ROI |
|---|
Cost Seg Smart pricing is tiered by purchase price ($495 under $300K, $795 $300K–$700K, $895 $700K–$1M, $1,295 $1M–$2M, $1,595 $2M–$5M, $1,895 above $5M). Other firms show low end of their published range. "Quote only" providers omitted from ROI math but listed for reference.
Adjust Your Numbers
The table above and the savings breakdown below update as you change these.
Estimates only. Always have your CPA review any cost segregation study before filing. Want an even simpler estimator? Try costsegtool.com.
Your Estimated Tax Savings
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 $495-$1,495 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.