Cash Flow from Depreciation™

Additional effective cash flow generated by depreciation tax savings.

Example Result

Sample Data

$2,688

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

See Your Own Properties

With the Rental Property Calculator™, you can run this calculation against your own rental properties using your real numbers.

View Pricing Sign In

Cash Flow from Depreciation™ Formula

Depreciation x Tax Rate

$11,200 x 24.00%

$2,688

What This Means

A sample property priced at $385,000 with $2,850/month rent has a cash flow from depreciation™ of $2,688. This shows the cash flow impact of depreciation. If your property generates $4,000 in pre-tax cash flow and depreciation saves $2,688 in taxes, your effective cash benefit is much higher than it appears.

Where This Value Comes From

Cash Flow from Depreciation™ is not entered directly — it is calculated from Annual Depreciation and Income Tax Rate. See the formula breakdown above and the detailed inputs below.

Calculated From

Cash Flow from Depreciation™ is calculated using these inputs:

Annual Depreciation

Annual straight-line depreciation deduction for the building.

$11,200

Income Tax Rate

Your marginal income tax rate applied to rental income.

Found on your tax return

24.00%

Used to Calculate

Cash Flow from Depreciation™ is used as an input for these calculations:

Platform Distribution

Unlock Platform Benchmarks

See the average, median, and where your property ranks among 105 properties on the platform.

Unlock Rental Property Calculator

Why It Matters

This shows the cash flow impact of depreciation. If your property generates $4,000 in pre-tax cash flow and depreciation saves $2,688 in taxes, your effective cash benefit is much higher than it appears.

Detailed Explanation

The cash flow benefit from depreciation tax savings. This equals the tax savings from depreciation and represents additional effective income generated by the tax deduction.