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