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# Actual Cash Value Calculator

 Purchase price of the item (\$): Replacement cost Current age of the item (years): Expected life of the item (years):
Actual Cash Value =
\$85000

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## 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.

## Formula

The actual cash value (ACV) calculation formula is as follows:

ACV = R × (E - C) / E

Where:
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

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