ACV vs. RCV Calculator
Estimate how depreciation changes an insurance claim payment. Enter the replacement cost, the item's age and your deductible to see the actual cash value payment, the recoverable depreciation, and what a replacement cost policy pays in total once repairs are done. It works for roofs, HVAC systems, flooring, cabinets, personal property and other covered items.
Calculate Your ACV and Recoverable Depreciation
How ACV and RCV Are Calculated on an Insurance Claim
Replacement Cost Value (RCV) is what it costs to replace the damaged item with new materials and labor at today's prices. Actual Cash Value (ACV) is RCV minus depreciation for the item's age and condition. This calculator uses straight-line depreciation: Depreciation % = Age ÷ Useful Life. It caps depreciation at 80% of replacement cost. That cap is this tool's assumption, not a rule: your insurer's estimate may use a different cap or none, and it may weigh condition as well as age.
On a replacement cost policy, the claim is paid in two steps. A common homeowners policy says the insurer "will pay no more than the actual cash value of the damage until actual repair or replacement is complete." The first payment is therefore the actual cash value minus your deductible. Once the work is done and you send proof (invoices, photos, the final contractor bill), the insurer pays the depreciation it held back. Under that wording, the total is capped at the smallest of your policy limit, the replacement cost of the damaged part, and the amount you actually spent. In Florida, a statute sets the first step: for a dwelling insured at replacement cost, the insurer "must initially pay at least the actual cash value of the insured loss, less any applicable deductible," and on a total loss of a dwelling it must pay replacement cost "without reservation or holdback of any depreciation" (Fla. Stat. § 627.7011(3)(a)). On an actual cash value policy there is no second payment; the depreciation is not paid even after repairs.
These results assume your dwelling limit is at least 80% of your home's replacement cost. Below that, the same common policy wording pays the larger of the actual cash value or a proportional share of the repair cost, not full replacement cost. You can check that case with our homeowners coverage gap calculator. For help with a depreciation dispute on a home, see our residential claim support page.
What Is Recoverable Depreciation?
Recoverable depreciation is the part of a replacement cost claim that the insurer holds back at first because of the item's age, then pays once repairs are complete. It is paid only up to what the work actually costs: under the common wording quoted above, if you spend less than the estimate, the second payment shrinks to match.
You have to ask for it. Keep every invoice, photo and permit, and send proof of the finished work to the insurer. Your policy sets the deadline, and the wording varies. One common homeowners form lets you take the actual cash value first and then "make claim within 180 days after loss for any additional liability" on a replacement cost basis. Read the loss settlement section of your own policy for the time limit that applies to you.
Four Things to Check When Depreciation Is on Your Estimate
Labor depreciation depends on your policy and your state
Some estimates depreciate the labor to install materials, not just the materials. Whether that is allowed turns on your policy wording and your state's law. In Minnesota, the state Supreme Court held that when a policy does not define actual cash value, the jury or appraisal panel may consider labor depreciation as one factor (Wilcox v. State Farm, 874 N.W.2d 780, Minn. 2016). Minnesota's claims-practices law also lists reducing a settlement for depreciation on "items not adversely affected by age, use, or obsolescence" as an unfair settlement practice (Minn. Stat. § 72A.201, subd. 5(9)).
Useful life is an estimate
A 20-year-old roof is not automatically worthless. The depreciation on an estimate reflects a judgment about age and condition. If the item was well maintained, records such as maintenance invoices, inspection reports and photos taken before the loss can support a lower depreciation figure.
One deductible per loss
On a common replacement cost form, the insurer pays the cost to repair or replace "after application of deductible." That is one deductible for the loss. If the deductible is larger than the first payment, the rest comes out of the depreciation payment, but it is not taken twice.
Your policy sets a deadline
Held-back depreciation does not wait forever. Check the loss settlement section of your policy for the time limit; one common form allows 180 days after the loss to make the replacement cost claim. Miss it and you may be limited to the actual cash value.
ACV vs. RCV Calculator FAQs
RCV (Replacement Cost Value) is what it costs to replace your damaged property with new materials at today's prices. ACV (Actual Cash Value) is the same number minus depreciation based on the item's age and condition. On a replacement cost policy, the insurer pays ACV first, then pays the depreciation once repairs are complete. On an ACV-only policy, the depreciation is not paid.
Recoverable depreciation is the amount the insurer holds back from your first payment for depreciation and pays once repairs are completed. To collect it, complete the repairs in the approved estimate and submit proof, usually a final contractor invoice, photos of the finished work, and sometimes permits or inspection reports. The second payment is limited to what the work actually cost, and your policy sets a deadline to claim it.
It gives an estimate, not your insurer's number. The roof options use this calculator's assumed useful lives for asphalt shingle, architectural, metal, tile, wood shake and flat roofs, and apply straight-line depreciation. Your insurer's estimate may use a different useful life, weigh the roof's condition, or apply a roof payment schedule, so compare the result with the depreciation lines on your actual estimate. Choose Custom to enter the useful life your insurer used.
Yes, it can happen. Common problems include a useful life that is too short for the material, ignoring the item's actual condition, depreciating labor where the policy or state law does not allow it, and depreciating items that are not affected by age or use. A line-by-line review of the estimate, photos and records is how these are found.
On a replacement cost policy, the held-back depreciation is paid when repairs are completed and documented. If you keep the actual cash value payment and do not repair, the depreciation is generally not paid. Your policy also sets a time limit to claim it; one common form allows 180 days after the loss. In Florida, the insurer may not hold back depreciation on a total loss of a dwelling (Fla. Stat. § 627.7011(3)(a)).
Check your declarations page. Look for "Replacement Cost" next to Coverage A (dwelling) and Coverage C (personal property). If it says "Actual Cash Value," that coverage is settled at ACV. In Minnesota, a homeowners policy that does not provide replacement cost coverage for personal property must say "nonreplacement cost" on the declarations page (Minn. Stat. § 65A.10, subd. 2). Some policies are replacement cost on the dwelling but pay only actual cash value, or use a payment schedule, for the roof. If you are unsure, a licensed public adjuster can review the declarations page with you.
Yes. Depreciation on an estimate is a judgment, not a fixed number. You can support a lower figure with evidence of the item's condition before the loss (maintenance records, recent inspections, photos) and, if labor was depreciated, with your policy wording and your state's law. A licensed public adjuster can assemble that documentation and present it to the insurer.
Think Your Carrier Over-Depreciated Your Claim?
If the depreciation on your estimate looks wrong, or recoverable depreciation is still waiting to be claimed, a licensed public adjuster can review the policy, the estimate and the depreciation schedule. Shoreline Public Adjusters is licensed in Florida, Minnesota, Wisconsin, North Dakota, and South Dakota, and handles residential and commercial property claims. If your property is in another state, look for a public adjuster licensed there.
Request a Free Claim ReviewDisclaimer
This ACV vs. RCV Calculator is provided by Shoreline Public Adjusters, LLC for general informational and educational purposes only. The depreciation calculations shown are illustrative examples based on this calculator's assumed useful lives and a simplified straight-line depreciation formula. Actual depreciation applied by your insurance carrier may differ significantly based on the carrier's estimating software, the condition of the damaged item, your state's law on labor depreciation, policy endorsements, and other factors.
Shoreline Public Adjusters makes no warranties or guarantees, express or implied, regarding the accuracy, completeness, or applicability of any calculation or information on this page. Your actual claim payment, deductible application, and recoverable depreciation depend on the specific terms of your insurance policy, the facts of your loss, applicable endorsements, and the carrier's adjustment of your specific claim. The results assume a replacement cost policy with a dwelling limit of at least 80% of replacement cost. The 80% depreciation cap used in this tool is this calculator's assumption, not a statutory requirement or an insurer standard, and may not reflect how your carrier calculates depreciation.
This calculator does not constitute legal advice, insurance advice, or a binding evaluation of any claim. Nothing on this page creates an adjuster-client relationship. Useful life values, state rules on labor depreciation, and recoverable depreciation deadlines vary by policy and jurisdiction and are subject to change. Before relying on any number shown above, consult your policy declarations page, your carrier's estimate, or a licensed public adjuster or attorney in your jurisdiction.
Shoreline Public Adjusters, LLC · FL G199012 · MN 40962416 · WI 21156868 · ND 3004392416 · SD (SD does not issue license numbers)