ACV vs RCV Calculator

The difference between Actual Cash Value and Replacement Cost Value is the most important line on your homeowner's policy — and almost no one reads it. Open your declarations page and find the line that reads "Loss Settlement" or "Settlement Type." It says one of:

• Replacement Cost (RCV) — carrier pays full cost to replace, minus deductible. This is what most homeowners assume they have.
• Actual Cash Value (ACV) — carrier pays depreciated value, minus deductible. The depreciation gap is yours.

On a 15-year-old asphalt roof with a $20K replacement cost, that distinction is roughly $10,000 of out-of-pocket difference — same roof, same claim, different word on the declarations page.

Most carriers use a linear depreciation model based on age divided by expected life:

depreciation_pct = min(80%, age / lifespan)
ACV = RCV × (1 − depreciation_pct)
gap = RCV − ACV  =  RCV × depreciation_pct

Some carriers use a steeper curve (depreciating faster early), or "useful life" tables tied to manufacturer warranty rather than realistic install life. The exact formula can usually be requested from your adjuster.

The 80% cap

Most carriers cap depreciation around 80% — even a fully end-of-life roof retains some salvage value (the decking, the structure underneath). This means you'll never see a $0 ACV check, but a 25-year-old asphalt roof can drop to ACV ≈ 20% of RCV.

Some carriers automatically switch your roof from RCV to ACV when it crosses age 15 or 20. The mechanism varies — sometimes a policy endorsement, sometimes a renewal schedule change — and it's often disclosed only in fine print. If your roof is past 15 years, call your agent and ask explicitly: "Is my roof on RCV or ACV settlement?" Don't assume the policy you signed up for is still in effect.

• Replace before the carrier converts. If you're at year 14 of an 18-year roof and your carrier has a known ACV-at-15 policy, replacing now keeps you on RCV settlement.
• Add a Roof Replacement Cost endorsement. Some carriers offer this as a rider for $50–$150/year. Worth it on roofs aged 10+.
• Shop around at renewal. If your current carrier is converting to ACV, get quotes from carriers that still write RCV on aged roofs. Premium may be higher; the difference is usually less than the depreciation gap on a single claim.
• Self-insure the gap. If you can't get RCV on this roof, set aside the depreciation amount yourself. Treat it as a forced savings account against the next claim.

Longer-life materials depreciate slower per year, so they hold more ACV value at any given age:

• 15-year-old 3-tab asphalt (18-yr life): ~80% depreciated → ACV ≈ 20% of RCV
• 15-year-old architectural asphalt (28-yr life): ~54% depreciated → ACV ≈ 46% of RCV
• 15-year-old standing seam metal (50-yr life): ~30% depreciated → ACV ≈ 70% of RCV
• 15-year-old clay tile (60-yr life): ~25% depreciated → ACV ≈ 75% of RCV

This is one underrated argument for upgrading material: not just longevity, but better insurance settlement throughout the life.

Reviewed by Eurocraft, a Texas-licensed general contractor with active claim experience. Lifespans reflect manufacturer expected life; carrier tables sometimes differ. Use this calculator to set your expectations, then verify against your specific policy and adjuster scope.