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**Table of Content**

Calculate the exact value of an insured property or item on the expected lifetime and current age through this easy-to-use actual cash value calculator.

This is the price or the value of an item at the present time upon which it can be sold. This calculation is widely used by insurance companies because they do not pay the whole amount. They pay the variable cost based on the item’s expected lifetime and replacement cost so that the client can repair it or buy a used item.

Let’s take a look at the following ACV (Actual Cash Value) Formula:

ACV = P x (E−C) / E

Where

- P represents the price of the item or the current cost at the present time.
- E shows the expected life of the item.
- C represents the current life of the item in years.

The actual cash value of an item is calculated by determining the replacement cost and deducting the depreciation from this cost in the insurance sector.

Have a look at the following steps to calculate the ACV precisely:

- Determine the cost of changing the item with the same quality item.
- Calculate the expected life span of the item.
- Find out the number of the year for which you have used the item.
- Calculate ACV by putting the values into the above-mentioned formula.

Instead of going through this calculation, you can instantly calculate the ACV with the help of an online actual cash value calculator car. Now you know, How to Determine Actual Cash Value.

Let’s suppose you have purchased an LCD for $20,000, having the expected lifetime of 10 years but it broke down in 2 years because of an incident. Now how to calculate actual cash value?

Given that:

Purchase Price = $20,000

Expected Lifetime = 10 years

Current Lifetime = 2 years

ACV = P×(E−C) / E

ACV = 20,000 x (10-2) / 10 = 20,000 x 8 / 10

ACV = 20,000 x 0.8 = $16,000

Instead of dragging yourself into this manual calculation, simply use the car actual cash value calculator. As it will let you perform the whole calculation swiftly.

Utilize our quite straightforward ACV calculator car to perform the calculation without much manual intervention. Let’s see how it works:

**Inputs:**

- Enter the “purchase cost”, “expected life of the item” and the “current life of the item” in the specified fields
- Now, make a click on the “calculate” button

**Output:**

- Actual Cash Value

From the source of thehartford.com: Actual Cash Value (ACV)

From the source of Wikipedia: Actual Cash Value, methods of insurance valuation.