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
| Field | What to enter |
|---|---|
| Appliance (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 rate | In %/yr |
| Age of the appliance | In years |
| Replacement 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 value |
|---|---|
| 1.5 | 649.64 |
| 2.25 | 574.46 |
| 3 | 499.28 |
| 3.75 | 424.1 |
| 4.5 | 348.92 |
| 6 | 198.56 |
Formula
Actual cash value (ACV) = replacement cost − replacement cost × depreciation rate × ageDepreciation rate ≈ 100% ÷ useful lifeWorked 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.
Frequently asked questions
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.