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Calcimator

Replacement Cost vs ACV Calculator

Compare claim payouts under replacement cost value (RCV) and actual cash value (ACV) insurance policies.

Replacement Cost Payout

$9,000.00

Actual Cash Value Payout

$4,000.00

Inputs

$
years
years
$

Comparison

RCV Advantage

$5,000.00

Total Depreciation

50%

Out-of-Pocket (RCV Policy)

$1,000.00

Out-of-Pocket (ACV Policy)

$6,000.00

Replacement Cost vs ACV Over Time

How to Use This Calculator
  1. Enter the item's original purchase price and age in years.
  2. Set the depreciation rate applicable to the item category.
  3. Review the Actual Cash Value (ACV) — what an insurer pays on a depreciated-value policy.
  4. Compare ACV to the Replacement Cost Value (RCV) — what it costs to buy new today.
  5. The difference is the out-of-pocket gap you bear with ACV coverage — use it to decide if RCV endorsement is worth the premium.

How the result changes with Replacement Cost per Item

Replacement Cost per ItemReplacement Cost PayoutActual Cash Value Payout
$10,090.00$49,450.00$24,225.00
$35,065.00$174,325.00$86,662.50
$65,035.00$324,175.00$161,587.50
$90,010.00$449,050.00$224,025.00

What each input means

Replacement Cost per Item
Cost to buy an equivalent new item today.
Number of Items
Number of items in the claim.
Average Item Age
Average age of the items being claimed.
Useful Life Expectancy
Expected useful life of the items before full depreciation.
Deductible
Your insurance deductible amount.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Replacement Cost per Item = 2000, Number of Items = 5, Average Item Age = 5, Useful Life Expectancy = 10 = 5 input(s) provided
  2. Calculate Replacement Cost Payout
    Replacement Cost Payout
    9000 = $9,000
  3. Calculate Actual Cash Value Payout
    Actual Cash Value Payout
    4000 = $4,000
  4. Calculate RCV Advantage
    RCV Advantage
    5000 = $5,000
  5. Calculate Total Depreciation
    Total Depreciation
    50 = 50%

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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