Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Depreciation holdback (RCV advantage)
$7,200
ACV payout
$3,800
RCV payout
$11,000
Depreciation applied
60%
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How to use this
- 1Enter cost to replace with new equivalent ($).
- 2Enter age of item (years).
- 3Enter expected useful life (years).
- 4Enter policy deductible ($).
- 5Read your depreciation holdback (rcv advantage) on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Homeowners and renters policies settle claims one of two ways: actual cash value (ACV), which pays replacement cost minus depreciation for the item's age and condition, or replacement cost value (RCV), which pays the full cost to buy a new equivalent item regardless of age, sometimes requiring you to actually replace it first and submit receipts for the depreciation holdback. The gap between these two numbers can be substantial for older roofs, appliances, and electronics. This calculator takes an item's replacement cost new, its age, and an expected useful life to compute straight-line depreciation, then shows both the ACV payout and RCV payout side by side along with the depreciation holdback you'd recover only under an RCV policy after replacing the item.
Worked example
Using the values the calculator loads with:
Inputs
- Cost to replace with new equivalent: 12000 $
- Age of item: 12 years
- Expected useful life: 20 years
- Policy deductible: 1000 $
Results
- Depreciation holdback (RCV advantage): $7,200
- ACV payout: $3,800
- RCV payout: $11,000
- Depreciation applied: 60%
What each field means
Inputs
- Cost to replace with new equivalent ($)
- The cost to replace with new equivalent used in the calculation, measured in $. Starts at 12000 $ so you have a working example on load.
- Age of item (years)
- The age of item used in the calculation, measured in years. Starts at 12 years so you have a working example on load.
- Expected useful life (years)
- The expected useful life used in the calculation, measured in years. Starts at 20 years so you have a working example on load.
- Policy deductible ($)
- The policy deductible used in the calculation, measured in $. Starts at 1000 $ so you have a working example on load.
Results
- Depreciation holdback (RCV advantage)
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- ACV payout
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- RCV payout
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Depreciation applied
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why would anyone choose an ACV policy over RCV?
ACV policies cost less in premium because the insurer pays out less on every claim. Some situations — investment/rental property, older homes, or roofs in hail-prone areas — are only insurable at ACV terms in the first place, since insurers restrict RCV roof coverage where claims frequency is high.
How do I actually collect the RCV holdback amount?
Most RCV policies pay the ACV amount first, then require you to complete the actual repair or replacement and submit receipts within a set window — commonly 180 days to 2 years — before releasing the withheld depreciation. If you never replace the item, you keep only the ACV payout even though you have an RCV policy.
Does this apply to roofs specifically?
Yes, and roofs are the most common source of ACV/RCV disputes. Many insurers now issue 'roof ACV' endorsements even on otherwise RCV homeowners policies once a roof passes a certain age (often 15-20 years), meaning a 20-year-old roof might be settled at 40-60% depreciated value even though the rest of the home is covered at replacement cost.
Is the deductible applied differently under ACV vs RCV?
No, the deductible is subtracted the same way in both cases — it's a flat reduction from whichever payout method applies, not a percentage of depreciation. The math difference between ACV and RCV comes entirely from whether depreciation is subtracted before the deductible is applied.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Replacement Cost vs. Actual Cash Value Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/replacement-cost-vs-acv
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/replacement-cost-vs-acv" target="_blank" rel="noopener">Replacement Cost vs. Actual Cash Value Calculator — RevenueLab</a> (2026).</p>
Source: [Replacement Cost vs. Actual Cash Value Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/replacement-cost-vs-acv) (2026).