Cost Approach Valuation Calculator
Value property using the cost approach: Land Value + (Replacement Cost New - Depreciation).
Inputs
$
sq ft
$/sq ft
years
years
%
%
Results
Property Value
$433,333.00
Replacement Cost New$500,000.00
Total Depreciation$166,667.00
Depreciation %33%
Building Value$333,333.00
Land Value$100,000.00
Remaining Economic Life40years
Land-to-Value Ratio23%
How to Use This Calculator
- Enter Land Value from comparable vacant land sales.
- Set Building Area in square feet and Replacement Cost per SF (cost to build new today).
- Enter Building Age and Economic Life in years for the straight-line depreciation calculation.
- Set Functional Obsolescence % for outdated features (e.g. obsolete floor plan) and External Obsolescence % for market factors.
- Review Property Value — land value plus depreciated cost of improvements.
- Cost approach is most reliable for new construction and special-use properties; use in conjunction with sales and income approaches.
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