Cost Approach Value
Estimated value based on land value plus depreciated replacement cost.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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View PricingCost Approach Value Formula
Land Value + (Replacement Cost x (1 - Physical Depreciation %))
What This Means
A sample property priced at $385,000 with $2,850/month rent has a cost approach value of $214,250 at Purchase (Month 0). The cost approach provides a floor value for the property. If you can buy below the cost to rebuild, you are getting a bargain. This is especially useful for unique properties where comparable sales are scarce.
Where This Value Comes From
Cost Approach Value is not entered directly — it is calculated from Property Value, Land Value Percent, and Square Footage. See the formula breakdown above and the detailed inputs below.
Inputs That Determine Cost Approach Value
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
The cost approach provides a floor value for the property. If you can buy below the cost to rebuild, you are getting a bargain. This is especially useful for unique properties where comparable sales are scarce.
Detailed Explanation
The Cost Approach estimates property value by adding the land value to the depreciated replacement cost of the building. It answers: "What would it cost to rebuild this property today, minus wear and tear?"
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Equity Position Current
2Current property value minus outstanding loan balance.
Equity as Percent of Value
2Current equity as a percentage of property value.
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