Free Land Value Calculator
Isolate the land value from total property value by subtracting the depreciated improvement value.
USD
USD
years
years
Estimated Land Value
$255,000
Depreciated Improvement Value$245,000
Land-to-Value Ratio51.0%
Estimated Land Value vs Total Property Value
Extracting Land Value
Land value is determined by subtracting the depreciated value of improvements (buildings, structures) from the total property value.
Formula
Depreciated Improvement = Replacement Cost x (1 - Age / Useful Life)
Land Value = Total Property Value - Depreciated Improvement
Why Land Value Matters
Example Calculation
A $500,000 property has improvements that would cost $350,000 to replace and are 15 years old with a 50-year useful life.
- 01Depreciation percentage: 15 / 50 = 30%
- 02Depreciated improvement value: $350,000 x (1 - 0.30) = $245,000
- 03Land value: $500,000 - $245,000 = $255,000
- 04Land-to-value ratio: $255,000 / $500,000 = 51.0%