Enter the replacement value ($) and the total depreciation ($) into the Calculator. The calculator will evaluate the Indemnity Value. 

Indemnity Value Formula

IV = RV - D

Variables:

  • IV is the Indemnity Value ($)
  • RV is the replacement value ($)
  • D is the total depreciation ($)

To calculate Indemnity Value, subtract the total depreciation from the replacement value.

How to Calculate Indemnity Value?

The following steps outline how to calculate the Indemnity Value.

  1. First, determine the replacement value ($). 
  2. Next, determine the total depreciation ($). 
  3. Next, gather the formula from above = IV = RV – D.
  4. Finally, calculate the Indemnity Value.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

replacement value ($) = 3000

total depreciation ($) = 2000