Estimate what an insurance company would pay based on replacement cost minus depreciation.
Actual Cash Value is the insurance industry's term for what your stuff is actually worth at the moment it breaks. Not what you paid for it, not what replaces it new, but the depreciated value somewhere in between. Most policyholders don't realize their coverage is ACV until a claim — at which point the depreciated payout becomes a surprise. This calculator shows you the number before the surprise.
ACV is one of two standard loss-settlement methods on a property insurance policy. The other is Replacement Cost Value (RCV). Under ACV, the insurer pays what the damaged or stolen item was worth on the day of loss — a depreciated number reflecting age, condition, and typical lifespan. Under RCV, the insurer pays the cost to buy or rebuild the item brand-new today, often with a two-stage payout: initial ACV check, then a "recoverable depreciation" payment after you actually replace the item.
Annual Depreciation = (Replacement Cost − Salvage) ÷ Lifespan
Accumulated Depreciation = Annual × Age
ACV = Replacement Cost − Accumulated Depreciation (floored at Salvage)
RCV is almost always worth the 10-15% premium increase. The math: on a $250,000 home with $125,000 of contents, a typical kitchen fire damage claim of $50,000 might pay $30,000 ACV versus the full $50,000 RCV. Saving $200/year on premiums for 10 years (= $2,000) to receive $20,000 less on the eventual claim is poor risk management.
Where ACV makes sense: dwelling-only fire coverage on a rental property you intend to rebuild differently anyway, or named-perils coverage on a heavily depreciated outbuilding.
Check the declarations page of your policy. Look for "Loss Settlement" provisions — "Actual Cash Value" or "Replacement Cost" will be explicitly stated for dwelling, other structures, and personal property.
Under RCV policies, your initial payout equals ACV; once you complete the actual repair or replacement, you submit receipts and recover the depreciation portion. The two-step structure prevents insurance fraud and ensures the money is actually spent rebuilding.
Yes. If repair cost exceeds typically 70-75% of ACV (state-specific threshold), the car is declared a total loss and you receive the ACV payment instead of repairs. This is why older cars often get totaled in minor accidents.
Yes — high-value jewelry is typically scheduled (insured at appraised value) with separate floater coverage, which pays appraised value with minimal depreciation.
Adjusters typically apply 0-25% condition adjustments. Excellent maintenance and documented care can reduce depreciation; visible wear and lack of maintenance can increase it.
Yes — for claims over $25,000, public adjusters can negotiate the depreciation assessment and typically recover 10-30% more than self-handled claims. They charge 5-15% of the recovery.
Reviewed by Ellen Karuthers, MBA, on February 22, 2026.