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. This calculator shows the depreciation gap on your specific roof so you know what your policy type actually means in dollars.

Inputs

Replacement Cost Value (RCV)

What it costs to install the same roof today — the adjuster's scope number.

Roof age (years)

Material lifespan reference

Most carriers use the manufacturer's expected life or an industry-standard table.

Depreciation cap (%)

Most carriers cap depreciation at 80% — even a fully end-of-life roof has some salvage value. Some policies cap at 70% or lower.

RCV — Replacement Cost Value$18,000

Depreciation−$9,643 (54%)

ACV — Actual Cash Value$8,357

RCV vs ACV gap

$9,643

On an RCV policy, this is recoverable after work is complete. On an ACV policy, this is your out-of-pocket on top of the deductible.

Depreciation curve at this RCV

Roof age	Depr %	ACV	Gap
0 yr	0%	$18,000	$0
3 yr	11%	$16,071	$1,929
6 yr	21%	$14,143	$3,857
9 yr	32%	$12,214	$5,786
12 yr	43%	$10,286	$7,714
15 yr	54%	$8,357	$9,643
18 yr	64%	$6,429	$11,571
21 yr	75%	$4,500	$13,500
24 yr	80%	$3,600	$14,400
27 yr	80%	$3,600	$14,400
30 yr	80%	$3,600	$14,400
33 yr	80%	$3,600	$14,400

The line on your policy that matters most

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.

How depreciation is calculated

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.

Why aged roofs sometimes get force-converted to ACV at renewal

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.

What you can do about an ACV gap

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.

Material choice and depreciation

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.

About this calculator

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.