Worth-It Analysis
Get a clear verdict on whether the study cost is justified by projected tax savings.
When Cost Segregation Makes Sense
Cost segregation studies typically cost $5,000 to $15,000 depending on property size and complexity. The calculator provides a clear verdict based on ROI thresholds: Strongly Recommended (ROI > 200%), Recommended (100-200%), Marginal (50-100%), or Not Recommended (< 50%). Properties above $300,000, higher tax brackets, and longer hold periods tend to see the strongest returns.
- Best for properties valued above $300,000 (higher building value = larger pools)
- Higher tax brackets amplify savings proportionally (35% vs 22% = 59% more savings)
- Longer hold periods accumulate more total savings but front-loading still matters
- Commercial properties (39-yr life) benefit more than residential (27.5-yr)
Understanding the ROI Metrics
The calculator provides multiple ways to evaluate the study investment: simple ROI percentage, payback period in months, net present value (NPV) at your chosen discount rate, and a payback ratio. The break-even point shows exactly when cumulative tax savings exceed the study cost, with most qualifying properties paying back the study in under 6 months.
- ROI: (Total Savings - Study Cost) / Study Cost as a percentage
- Payback: months until cumulative savings exceed the study fee
- NPV: present value of all savings minus study cost at your discount rate
- Payback Ratio: total savings divided by study cost (e.g., 5.0x = $5 saved per $1 spent)
Sample Output
See what this feature calculates for you.
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