# Appliance Depreciation Calculator

URL: https://speedycalculator.com/calculators/everyday-life/appliance-depreciation/
Last updated: 2026-10-25

> The appliance depreciation calculator estimates the actual cash value of a household appliance from its replacement cost, age and yearly depreciation rate – the figure insurers use to settle claims.

## Inputs

- Appliance (typical yearly depreciation)
- Custom depreciation rate (%/yr)
- Age of the appliance (years)
- Replacement cost (new)

## Results

- Depreciation rate used
- Actual cash value
- Depreciation so far
- Expected useful life

## Formula

```
Actual cash value (ACV) = replacement cost − replacement cost × depreciation rate × age
Depreciation rate ≈ 100% ÷ useful life
```

## Explanation

Many home insurance policies pay the actual cash value of a damaged appliance – the replacement cost minus depreciation – unless you have replacement-cost cover. Depreciation is usually straight-line over the appliance's expected life: a washing machine expected to last eight years loses about 12.5% of its value each year.

### How to use the Appliance Depreciation Calculator

- **Appliance (typical yearly depreciation)**
- **Custom depreciation rate**
- **Age of the appliance**
- **Replacement cost (new)**
- Every result field is editable: type into **Actual cash value** and **Age of the appliance** plus every other field update to match.

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose the appliance (or set your own rate), and enter its age and what it would cost to replace it today.

### Tips

- Use the figures from your own bills and product labels – prices and appliance ratings vary widely.
- Look at yearly totals: small daily costs add up and make it easier to compare options.
- Round quantities up to whole packs, rolls or bulbs when you shop.
- Re-check the numbers when prices change; most results scale directly with the unit price.

### Common mistakes to avoid

- Confusing watts (power) with watt-hours or kilowatt-hours (energy).
- Comparing prices without bringing them to the same unit first.
- Ignoring one-off costs such as installation, delivery or replacement parts.

### Inputs explained

FieldWhat to enterAppliance (typical yearly depreciation)Choose one: Air conditioner (window) (10.0%/yr), Dehumidifier (12.5%/yr), Dishwasher (12.5%/yr), Clothes dryer (7.7%/yr) …Custom depreciation rateIn %/yrAge of the applianceIn yearsReplacement cost (new)Amount in your currency

### What each result means

- **Actual cash value** = max([Replacement cost (new)]×(1 - [Depreciation rate used]÷100×[Age of the appliance]), 0)
- **Depreciation so far** = [Replacement cost (new)] - [Actual cash value]
- **Expected useful life** = 100÷[Depreciation rate used]

### Example values

How the main result changes when **Age of the appliance** changes and everything else stays at the example values above:

Age of the appliance (years)Actual cash value1.5649.642.25574.463499.283.75424.14.5348.926198.56

## Worked example

Inputs — Appliance (typical yearly depreciation): Washing machine (12.5%/yr); Custom depreciation rate: 10 %/yr; Age of the appliance: 3 years; Replacement cost (new): $800.

Results — Depreciation rate used = 12.53 %/yr; **Actual cash value = $499.28**; Depreciation so far = $300.72; Expected useful life = 8 years.

## Key terms

- **ACV**: Actual cash value – the replacement cost minus depreciation.

## FAQ

**How do insurers depreciate appliances?**
Usually straight-line: replacement cost × (1 − rate × age), never below zero.

**How long do appliances last?**
Roughly: dishwashers and washers 8–10 years, refrigerators 13, ranges 15, freezers 20 – depending on use and care.

**What is replacement cost coverage?**
Insurance that pays the cost of a new equivalent item without subtracting depreciation.

**What formula does the Appliance Depreciation Calculator use?**
Actual cash value (ACV) = replacement cost − replacement cost × depreciation rate × age.


## Sources

- [National Association of Home Builders – Study of life expectancy of home components](https://www.nahb.org/)