Enter the purchase price of an item, it’s current age, and the expected lifetime of the item into the calculator. The calculator will evaluate the current actual cash value of the item.

## Actual Cash Value Formula

The following equation is used to calculate the actual cash value of an item.

ACV = P × (E – C) / E

- Where ACV is the actual cash value ($)
- P is the purchase price of the item, or current cost for replacement
- E is the expected life of the item in years
- C is the current life in years

## What is actual cash value?

An actual cash value is an estimated value of an item in its current state based on it’s expected life time and replacement cost. For example, if a car is expected to last 20 years, and it has a certain purchase price, the actual cash value would be the ratio of it’s current years to the original purchase price minus the replacement cost.

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