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ACV vs replacement cost calculator.The depreciation gap, shown.
Item age, useful life, replacement cost. The ACV payout, the RCV payout, and the holdback math, side by side. The number the adjuster uses to argue down your claim. Free. No signup.
The damaged item
Age, life, and cost
ACV payout (what the carrier will write)
$6,000
after $9,000 depreciation
RCV payout (full replacement)
$15,000
+$9,000 (60%) over ACV
Replacement cost
$15,000
Depreciation
60%
Years left of life
8
RCV holdback
$9,000
In plain English
Your Roof: asphalt shingle is 12 years old against a 20-year useful life, so the carrier applies 60% depreciation. Under an ACV policy, the payout is $6,000, and you absorb $9,000 out of pocket. Under an RCV policy, the payout is $15,000, but it arrives in two stages: ACV upfront, plus the $9,000 holdback after you submit receipts proving you actually replaced the item.
The gap is $9,000. RCV costs roughly 10 to 15 percent more in annual premium and is worth it for any item with significant remaining useful life. ACV makes sense only when the item is at or past its useful life.
Where every dollar of the replacement cost goes
Useful-life baselines from HUD Handbook 4350.3 and Marshall & Swift, current as of May 2026.
Why this one
Every other calculator shows one number.This one shows the gap.
Depreciation, line by line
The adjuster's calculation, surfaced. Item age divided by useful life times replacement cost. The same math the carrier uses, with the schedule baselines named so you can argue them.
ACV and RCV, side by side
What you'd get under each policy type, with the holdback math broken out. Most calculators force you to pick one; this one shows both so you can decide whether the RCV premium upgrade is worth it.
Useful-life schedules, defaulted
Roof, HVAC, water heater, carpet, kitchen appliances, contents. HUD and Marshall & Swift baselines pre-loaded. Adjustable when your specific item's documented life differs.
How it works
The math behind the payout.
Depreciation = (item age ÷ useful life) × replacement cost. Straight-line is the default schedule. A 12-year-old asphalt roof on a 20-year schedule is 60 percent depreciated. Carriers occasionally use accelerated schedules for items that decline faster (electronics, clothing); the calculator lets you override the useful life to match.
ACV payout = replacement cost − depreciation. Under an ACV policy, this is the entire check. The depreciation is your out-of-pocket cost.
RCV payout = full replacement cost, but in two stages. The ACV portion is paid upfront. The depreciation holdback is released after the insured submits receipts proving the actual replacement happened. The holdback is the carrier's mechanism for preventing paid-but-not-replaced claims; it is recoverable if and only if you complete the repair within the policy's recovery window (usually 6 to 12 months).
Useful-life schedules default from HUD Handbook 4350.3 (residential) and Marshall & Swift (commercial cost data). Common schedules: asphalt shingle 20 years, tile/metal 40 years, HVAC 15, water heater 10, carpet 7, hardwood refinish 25, kitchen appliances 12, electronics 5, furniture 10, clothing 4. The category dropdown loads the default; adjust manually for documented variances (a roof warranty longer than the standard schedule, an HVAC with documented heavy use).
The gap is the depreciation amount. Under ACV, you absorb it. Under RCV, you recover it after submitting receipts. The RCV premium upgrade is typically 10 to 15 percent more than ACV; for any item with significant remaining useful life, the gap exceeds several years of premium difference.
What this calculator can't see is the policy itself: the ACV vs RCV election on the dwelling, the contents endorsement (often ACV by default), the roof surfacing schedule that accelerates depreciation on asphalt shingle roofs older than a certain age, and the anti-concurrent causation clause that can wipe out a claim entirely if any excluded peril contributed. Once the dollar math is clear, scan the policy to see which endorsements actually apply.
Related reading
The math is the easy part.
Questions
ACV vs replacement cost FAQ.
What is the difference between ACV and RCV?+
Actual Cash Value (ACV) pays you the depreciated value of the damaged item at the time of loss, computed as replacement cost minus depreciation. Replacement Cost Value (RCV) pays you what it actually costs to replace the item new, with no depreciation deducted. A 12-year-old roof with a 20-year useful life is 60 percent depreciated under straight-line. An ACV policy pays 40 percent of replacement cost. An RCV policy pays the full replacement cost, although in two stages: ACV upfront and the depreciation holdback after you submit receipts proving you actually replaced the item.
How does the insurance company calculate depreciation?+
Most carriers use straight-line depreciation against a useful-life schedule. Asphalt shingle roofs are typically 20 to 25 years, HVAC systems 15 years, water heaters 10 years, carpet 7 years, kitchen appliances 12 years. The carrier divides the item's age by its useful life to get the depreciation percentage. A 10-year-old asphalt roof on a 20-year schedule is 50 percent depreciated. The exact schedule varies by carrier and the policy form, but most follow HUD Handbook 4350.3 baselines for residential property and Marshall & Swift schedules for commercial.
Is RCV worth the higher premium?+
Usually yes, for any item with significant remaining useful life. RCV policies cost roughly 10 to 15 percent more in annual premium than ACV policies. For a 7-year-old roof with 13 years of useful life remaining, the depreciation gap is 35 percent of replacement cost, which is far more than several years of premium difference. For items at or near the end of their useful life (a 19-year-old asphalt roof), ACV makes more sense because the gap is small and the premium savings compound. Most homeowners insurance policies are RCV on the dwelling and ACV on contents; you can usually upgrade contents to RCV for a small additional premium.
What is the recoverable depreciation holdback?+
Under an RCV policy, the carrier issues two checks. The first check is the ACV amount, paid immediately. The second check is the depreciation holdback, paid after you complete the repair and submit receipts. The holdback is held by the carrier as an incentive to actually do the repair rather than pocket the difference. Most states give you 6 to 12 months from the date of loss to submit the receipts, after which the holdback is forfeit. If you don't replace the item, you keep only the ACV portion.
Can I dispute the depreciation amount?+
Yes. The depreciation calculation is an estimate the adjuster makes based on the carrier's schedule. If the schedule shows a 20-year useful life for an asphalt roof but the manufacturer warranty is 30 years, you can argue the useful life is longer and the depreciation lower. If the adjuster is depreciating items that should not depreciate (interior framing, foundation), you can challenge that. Get a contractor estimate that lists items and conditions in detail. The first carrier offer is often the lowest; most settle higher when challenged with documentation.
Does the ACV vs RCV gap apply to personal property too?+
Yes, and it's often where the gap is biggest. Clothing depreciates at roughly 25 percent per year; a 4-year-old wardrobe is fully depreciated under ACV. Electronics depreciate at 20 percent per year; a 5-year-old TV is fully depreciated. Furniture is usually 10 percent per year. Most homeowners policies cover personal property at ACV by default, which can mean a $50,000 contents loss pays a $15,000 ACV claim. The RCV upgrade for contents is one of the cheapest premium adjustments on a homeowners policy and is almost always worth it.