Actual Cash Value Calculator

Calculate the actual cash value of an asset based on its purchase price, age, useful life, and salvage value.

Input Parameters

Calculation Results

Calculation Formula

ACV = Original Purchase Price × (1 - (Age of Asset / Useful Life of Asset)) × Salvage Value

Where:
- Original Purchase Price: The initial cost of the asset
- Age of Asset: The number of years the asset has been in use
- Useful Life of Asset: The total number of years the asset is expected to be useful
- Salvage Value: The estimated value of the asset at the end of its useful life

Result

Actual Cash Value:

$0.00

Actual Cash Value Calculator Calculator Usage Guide

Learn how to use the Actual Cash Value Calculator and understand its working principles

How to Use the Calculator

  1. Enter the Original Purchase Price of the asset (e.g., $10,000).
  2. Enter the Age of Asset in years (e.g., 3 years).
  3. Enter the Useful Life of Asset in years (e.g., 5 years for a typical car).
  4. Enter the Salvage Value (e.g., $2,000).
  5. Click the Calculate button to determine the actual cash value.
  6. Use the Reset button to clear all fields and start over.

Understanding Actual Cash Value (ACV)

The Actual Cash Value is the estimated worth of an asset at the current time. It takes into account depreciation based on the asset's age, expected useful life, and salvage value. This value is typically used for insurance purposes, especially for older assets.

Example Calculation

Suppose you purchased a car for $25,000. After 4 years of use, the car's useful life is estimated to be 10 years, and its salvage value is $5,000.

Calculation:
ACV = $25,000 × (1 - (4/10)) × $5,000 = $25,000 × 0.6 × $5,000 = $750,000

When to Use This Calculator

  • When determining insurance claims for partially depreciated assets
  • When selling used assets and estimating their market value
  • For accounting purposes to determine the book value of assets
  • When calculating residual value for leasing agreements