Insurance Claim Tools

ACV vs RCV Calculator

Replacement cost value (RCV) is the cost to repair or replace property at current prices. Actual cash value (ACV) generally subtracts depreciation for age and wear. [1] Compare the property’s value with the modeled payment after your deductible—they are not the same number.

Results

Estimated initial payment

$10,600

ACV less your deductible, floored at zero. This is before other policy terms, not a coverage determination.

Replacement cost (RCV): $18,000
Depreciation (30%): $5,400
Actual cash value (ACV): $12,600
Deductible: $2,000
Estimated initial payment: $10,600
Potentially recoverable depreciation: $5,400
Additional payment from recovery: $5,400
Estimated potential total payment: $16,000

How this was calculated

RCV = $18,000
Depreciation rate = min(9 ÷ 30 × 100%, 100% cap) = 30%
Depreciation = $18,000 × 30% = $5,400
ACV = $18,000 − $5,400 = $12,600
Initial payment = max($0, $12,600 − $2,000) = $10,600
Potential total = max($0, $18,000 − $2,000) = $16,000
Additional recovery = $16,000 − $10,600 = $5,400

Policy language, the insurer’s method, state rules, property condition, repair spending, limits, and exclusions can change these estimates. Math keeps full precision; displayed amounts are rounded to cents and may differ by a cent when added.

About these assumptions

Start with your estimate or use the editable example. All amounts are US dollars, not national cost averages. Enter replacement cost (RCV), not the first check.
Expected useful life is an editable example assumption, not a universal insurer schedule.
Maximum depreciation is an editable modeling assumption: 100% by default. Enter the cap from your estimate or policy if different.
The deductible is applied once to the claim, not again to the recovery payment.
Recoverable depreciation is an assumption, not a coverage decision. Recovery usually requires completed repairs and proof within the policy deadline. ACV-only policies may not pay it.

Worked example: value versus payment

Use an illustrative $18,000 replacement cost, age 9, useful life 30 years, and $2,000 deductible. These editable assumptions produce 30% depreciation: $5,400.

RCV $18,000 − depreciation $5,400 = ACV $12,600
ACV $12,600 − deductible $2,000 = initial estimate $10,600
Potential total if recovery conditions are met: $16,000

The potential total includes the initial estimate; it is not a second payment. With these inputs, the modeled additional recovery is $5,400. Replacement-cost claim payments may come in stages, with depreciation withheld until repair requirements are met. [1]

How the formula works

depreciation % = min(cap %, age ÷ useful life × 100)
  or min(cap %, manual override %)
depreciation = replacement cost × depreciation % ÷ 100
ACV = replacement cost − depreciation
initial modeled payment = max(0, ACV − deductible)
potential total, if recoverable = max(0, replacement cost − deductible)
potential total, if not recoverable = initial modeled payment

Use the manual percentage if you have a documented depreciation figure rather than estimating from age. Switching recoverability off keeps the modeled total at the ACV payment stage.

Limitations

This does not determine coverage or a claim payment. Policy language, the insurer’s method, state rules, and property condition can change the result.
Straight-line depreciation and the editable 100% default cap are modeling assumptions, not insurer rules. A manual percentage replaces age/life math but remains subject to the cap.
Potential recovery usually requires completing eligible repairs, documenting the work, and meeting a policy deadline. The toggle does not verify those conditions; ACV-only coverage may not provide recovery.
Policy limits, separate deductibles, line-item depreciation, actual repair spending, and coverage exclusions are not modeled. No allowance for taxes, overhead, or code upgrades is added automatically; include only the scope you intend to compare.

Which comparison do you need?

Reading an estimate: compare RCV and ACV before comparing either with a check; the deductible affects the payment, not the ACV.
Checking ACV-only coverage: turn recovery off to see the unrecovered-depreciation effect. Confirm the coverage for this specific property, not just the policy’s headline name. [2]
Using an adjuster’s percentage: select the manual override and check the cap so the calculator is modeling the same assumption.

Common questions

Is actual cash value the amount of my first check?

Not necessarily. ACV is the value after depreciation; this model then subtracts the deductible and floors the payment at zero. Prior payments, limits, and other policy terms can also affect an actual check.

Does replacement-cost coverage remove depreciation from the first payment?

Not always. Texas Department of Insurance guidance describes an initial payment less depreciation and the deductible, followed by potential recovery after repair requirements are met. Check your policy and adjuster’s instructions.

Can I use a depreciation percentage from my estimate?

Yes. Enter it as the manual override. It replaces age divided by useful life, but the editable maximum-depreciation cap still applies. A single percentage cannot reproduce different depreciation rates across line items.

Does the 100% cap mean my insurer uses that maximum?

No. It is an editable modeling ceiling. Use the applicable documented assumption if you have one; insurers can use different methods and consider condition.

Why is the potential total less than RCV?

The modeled total subtracts your deductible even when depreciation is recoverable. It is a cumulative estimate before policy limits, spending requirements, and other terms—not a promised payment.

Related guides

Sources and methodology

Insurance explanations use Texas Department of Insurance consumer guidance, not nationwide payment rules. The arithmetic is a simplified model, not a published insurer schedule. Example dollar amounts are editable illustrations, not market repair prices.

Straight-line age divided by useful life, or a manual percentage override, limited by the editable depreciation cap. 100% is a modeling ceiling, not a claim that an insurer depreciates property fully. Policy language, the insurer’s method, state rules, and property condition can change the result.

[1] Texas Department of Insurance — Home insurance guide. Retrieved 2026-09-23. Texas consumer guidance. Definitions and repair-claim payment stages support the explanations, not a universal settlement formula. No national repair-cost figures are taken from this source.
[2] Texas Department of Insurance — Replacement cost or actual cash value?. Retrieved 2026-09-23. Illustrates the distinction between replacement-cost and actual-cash-value roof coverage. Its sample age/value figures are not adopted as a depreciation schedule.
[3] Texas Department of Insurance — Insurance and your roof. Retrieved 2026-09-23. Roof-specific Texas guidance. This shorter page describes further payment after repairs start, whereas the full guide describes the bill for a finished job. We do not universalize either timing: policy requirements and the adjuster's instructions must be checked.

This tool provides an educational estimate only. Insurance companies, contractors, and building officials may calculate these figures differently depending on policy language, property condition, local pricing, and applicable codes.

Disclaimer: Calculators and information on this site are provided for educational and estimating purposes only. Results do not determine insurance coverage, claim payments, repair requirements, or professional recommendations.