ACV vs RCV
Depreciation Calculator.
Work out depreciation, actual cash value, the first check, and the recoverable depreciation on a property claim as you type.
- Free, no sign-up
- Straight-line method
- Updates as you type
First payment
$9,980Actual cash value minus the deductible
Depreciation
48% straight-line
Actual cash value (ACV)
Replacement cost minus depreciation
Deductible
Recoverable depreciation
Released on a replacement cost policy after repairs
RCV policy total
$21,500
ACV policy total
$9,980
How the calculation works
- Depreciation percentage = age ÷ expected useful life, capped at 100%.
- Depreciation = replacement cost × depreciation percentage.
- Actual cash value = replacement cost − depreciation.
- First payment = actual cash value − deductible.
- On a replacement cost policy, the depreciation is paid after the repairs are complete.
Why depreciation is worth checking
Depreciation is often the largest single deduction in a carrier estimate, and it depends on the age and condition the carrier assumes. Permit records show when a roof was actually replaced, and historical aerial imagery shows its condition before the loss, both of which can support a lower depreciation figure. Dex AI can compare the carrier's estimate line by line so you can see where depreciation was applied and at what rate.
Start from the right replacement cost
Depreciation is a percentage of the replacement cost, so an undersized replacement cost shrinks every number on this page. Roof measurement reports give the dimensions, slope, and material the estimate should be built on. For hail claims, the hail size chart shows which sizes typically damage each part of a home.
Inside the platform
Take it further in Drodat
This free tool covers one step. These Drodat features handle the rest of the claim.
- Historical Permit DataCheck the building permit history to show when the roof was actually replaced, which sets the age the depreciation is based on.
- Historical Aerial ImageryShow the roof’s condition before the loss with years of historical aerial imagery, so wear and tear assumptions can be challenged.
- Dex AIHave Dex AI read the policy and compare the carrier’s estimate line by line, including the depreciation applied to each item.
- Roof MeasurementsGet roof dimension, slope, and material reports to check the replacement cost the estimate starts from.
Every feature above is in one platform. Try Drodat free for 14 days.
Start free trialFrequently asked questions
Replacement cost value (RCV) is what it costs to replace damaged property new. Actual cash value (ACV) is the replacement cost minus depreciation for age and wear. An RCV policy eventually pays the full replacement cost minus the deductible; an ACV policy pays only the depreciated value.
The most common method is straight-line: the item’s age divided by its expected useful life, multiplied by the replacement cost. Carriers also apply depreciation line by line in estimates, and the percentages they use can be negotiated.
Recoverable depreciation is the amount a replacement cost policy withholds from the first payment and releases after the repairs are completed, usually once invoices or proof of completion are submitted.
The deductible is subtracted from the first payment, so the initial check is the actual cash value minus the deductible.
Yes. Depreciation is an estimate. Policyholders and public adjusters often challenge the age, condition, useful life, or percentage a carrier used, and documentation such as permit history and historical aerial imagery can show a roof was newer or in better condition than assumed.
Results use straight-line depreciation and are an estimate, not a coverage determination. Your policy and the carrier’s estimate control the actual payment.
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