Replacement Cost Claim Calculator

• Line Replacement Cost = (Qty × Unit) + Tax + Shipping + Labor − Salvage.
• Tax = (Qty × Unit) × (Tax% ÷ 100).
• Line Depreciation = Line Replacement Cost × (Dep% ÷ 100).
• Line ACV = max(0, Line Replacement Cost − Line Depreciation).
• Coinsurance Factor = min(1, Insured Amount ÷ Required Insurance).
• Adjusted Replacement Cost = Total Replacement Cost × Coinsurance Factor × (1 + Inflation% ÷ 100).
• Capped Replacement Cost = min(Adjusted Replacement Cost, min(Policy Limit, Sublimit)).
• Net Total Payable = max(0, Capped Replacement Cost − Deductible − Prior Payments).
• ACV Payable Now = max(0, Capped ACV − Deductible − Prior Payments).
• Recoverable Later = Net Total Payable − ACV Payable Now (if allowed).

1. Enter coverage limits, deductible, and any prior payments.
2. Add each damaged item with quantity and unit replacement cost.
3. Include taxes, shipping, labor, salvage, and depreciation percent.
4. Enable coinsurance only if your policy requires it.
5. Press Calculate to view payouts above the form.
6. Download CSV for spreadsheets and PDF for sharing.

Replacement Cost Versus Actual Cash Value

Replacement cost reflects today’s price to buy new items of similar quality. Actual cash value subtracts depreciation for age, wear, and obsolescence. This calculator shows both figures so you can separate an initial payment from any later, recoverable amount. Use it to run best, expected, and conservative depreciation scenarios in practice.

Building a Defensible Itemized Estimate

Accurate estimates start with quantity and unit replacement cost, then add sales tax, shipping, and labor. Salvage credits reduce the line total when applicable. Enter depreciation as a percentage you can defend with receipts, condition notes, and comparable pricing. Consistent descriptions, model numbers, and photos improve auditability and speed settlement reviews.

Applying Limits, Sublimits, and Coinsurance

Coverage limits cap the payable replacement cost even when item totals are higher. If a sublimit applies, the lower cap controls that category. Coinsurance can reduce payment when insured value is below the required amount, using an insured-to-required ratio. Inflation guard, when used, increases the replacement cost basis by a stated percent.

Understanding Payable Now and Recoverable Later

The payable-now figure is typically based on capped ACV minus the deductible and prior payments. Recoverable depreciation represents the difference between capped replacement cost and the ACV payment, when the policy allows reimbursement after replacement is completed. Track prior payments carefully to prevent overpayment and to reconcile supplemental requests.

Reporting, Exports, and Quality Controls

Use the chart to visualize how deductibles and prior payments affect cash flow. Export CSV for spreadsheet checking and PDF for sharing with stakeholders. Validate totals by scanning for outliers, confirming tax rates, and ensuring depreciation reflects item condition and age. A quick cross-check is dividing total RCV by item count to spot unusually high entries.

1) What is ACV in this calculator?

ACV is replacement cost minus depreciation for each item. It estimates the initial settlement value before any recoverable depreciation is paid, subject to limits, deductible, and prior payments.

2) When should I include salvage?

Include salvage when an item keeps residual value, such as reusable parts or resale. The salvage amount reduces the line replacement cost and can materially change both ACV and the capped payable total.

3) How does coinsurance change the result?

When enabled, the calculator applies a factor equal to insured amount divided by required insurance, capped at 1. If you are under-insured, the factor reduces replacement cost and ACV before limits and deductibles.

4) What does inflation guard do?

It increases the replacement cost basis by the entered percentage to reflect updated pricing. Depreciation percent stays the same, but the larger replacement cost can increase both capped totals and recoverable depreciation, depending on limits.

5) Can I export my calculations?

Yes. Download CSV for spreadsheets and PDF for shareable reporting. Exports include your summary figures and the full item table used in the calculation for transparent review and documentation.

6) Is this the final claim settlement amount?

No. Results are planning estimates based on your inputs. Policy language, adjuster review, coverage definitions, documentation, and local regulations may change the final payment.