Section 174 Tax Calculator: Estimate Your R&D Amortization

For software developers, startup founders, and finance teams: quickly estimate how Section 174 capitalization changes your R&D tax deductions, annual amortization, and cash flow. Get a clear schedule for 5 or 15 years.

Results update live as you type — no button needed. The Example button fills a sample input.

Why use Section 174 Tax Calculator?

Instant calculation of annual amortization under Section 174 rules

Compare tax liability changes for 5-year vs. 15-year periods

Generate a full amortization schedule for planning

Adjust tax rate to match your entity type

No sign-up required; results are private and local

FAQ

What is Section 174?

Section 174 of the U.S. tax code requires businesses to capitalize and amortize R&D expenses over 5 years (domestic) or 15 years (foreign), rather than deducting them immediately.

Who needs this calculator?

Software developers, startup founders, and finance professionals who want to estimate the tax impact of Section 174 on their R&D spending.

How is the amortization calculated?

The calculator divides your total R&D expenses by the selected amortization period (5 or 15 years) to determine the annual deduction. It then estimates the tax impact by applying your tax rate.

Can I use this for both domestic and foreign R&D?

Yes. The 5-year period applies to domestic R&D, while the 15-year period applies to foreign R&D. Select the appropriate period based on your situation.

Is this calculator accurate for tax filing?

This tool provides estimates for planning purposes only. Consult a tax professional for official tax advice and filing.

Example input

Try it with this sample — paste it into the box above:

500000 us 21

How to use Section 174 Tax Calculator

  1. Enter or paste your data into the R&D amortization box above.
  2. The result appears instantly in the Schedule box — everything runs in your browser, nothing is uploaded.
  3. Use Copy or Download to keep the result, or Example to load a sample first.

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