Actual Cash Value Calculator
About Actual Cash Value Calculator
The 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.
The actual cash value (ACV) calculation formula is as follows:
ACV = R × (E - C) / E
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