Depreciation Calculator for Property Claims
Estimate the actual cash value (ACV) of a damaged or lost property item by calculating depreciation based on the item's age, expected useful life, and current replacement cost. Used by adjusters and policyholders to determine fair claim settlements.
Current cost to replace the item with a new equivalent.
How old the item is at the time of the loss.
Typical lifespan of the item (e.g. roof: 20 yrs, appliance: 10 yrs).
Percentage of RCV retained at end of useful life (commonly 10%).
Straight-line is standard for most property claims.
Formulas Used
Straight-Line Depreciation (most common in property claims):
Annual Depreciation Rate = 1 / Useful Life Depreciable Base = RCV − Salvage Value Total Depreciation = Depreciable Base × Annual Rate × Effective Age Actual Cash Value (ACV) = RCV − Total Depreciation
Double Declining Balance (accelerated):
Annual DDB Rate = 2 / Useful Life
Book Value (year n) = Prior Book Value × (1 − DDB Rate)
[floored at Salvage Value]
Total Depreciation = RCV − Book Value after n years
ACV = RCV − Total Depreciation
Recoverable Depreciation (RCV Policy):
Recoverable Depreciation = RCV − ACV (Paid after proof of repair/replacement is submitted)
Assumptions & References
- Actual Cash Value (ACV) = Replacement Cost − Depreciation, per the broad evidence rule used in most U.S. states.