Online Tools and Calculators > Financial Calculators > Actual Cash Value Calculator

Actual Cash Value Calculator

Purchase price of the item ($): Replacement cost
Current age of the item (years):
Expected life of the item (years):

About This Tool

The online Actual Cash Value Calculator is used to calculate the actual cash value (ACV).

Actual Cash Value

In the property and casualty insurance industry, Actual Cash Value (ACV) is a method of valuing insured property. It is calculated by subtracting depreciation from the replacement cost. The depreciation is usually calculated by establishing a useful or expected life of the item and determining what percentage of that life remains.

Formula

The actual cash value (ACV) calculation formula is as following:

ACV = R × (E - C) / E

Where:
ACV = actual cash value
R = replacement cost or purchase price of the item
E = expected life of the item
C = current life of the item

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