InsuranceClaimsTools

Claim Payout Calculator

Estimate a property claim settlement after depreciation, salvage and the deductible, on either an actual cash value or replacement cost basis.

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Free · No sign-up · Runs in your browser

The single biggest surprise in a property claim is depreciation. A policy settling on actual cash value pays what the item was worth on the day it was damaged, not what an equivalent new one costs - and on anything more than a few years old the difference is substantial.

This calculator applies depreciation, salvage and the deductible in the order an adjuster does, on either settlement basis, so the figure you expect matches the figure that arrives.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Estimated payout

$8,800

Your net cost

$15,200

Settlement basis
Actual cash value
Replacement cost
$24,000
Actual cash value
$10,800
Depreciation applied
$13,200
Recoverable depreciation
$0
Deductible applied
$2,000
Salvage deducted
$0

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

Actual cash value settles at replacement cost minus depreciation. Replacement cost policies often pay the depreciated amount first and release the rest once the item is actually replaced.

This is not a claim decision. Only your adjuster, working from the policy wording, can determine what is payable.

How to use the claim payout calculator

  1. Enter what it would cost to replace the damaged property new.
  2. Enter the depreciation percentage for its age and condition.
  3. Choose the settlement basis - actual cash value or replacement cost.
  4. Add any salvage value and your deductible, then read the estimated payout.

What people use this for

  • Setting expectations before a claim is settled.
  • Understanding why a settlement came back lower than the repair estimate.
  • Deciding whether replacement cost cover is worth its extra premium.
  • Working out how much of a repair you would need to fund yourself.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

An eight-year-old roof on an ACV policy

A $24,000 replacement cost, 55% depreciated, no salvage, with a $2,000 deductible.

Estimated payout
$8,800
Your net cost
$15,200
Actual cash value
$10,800

The same loss on a replacement cost policy

Identical figures settled on replacement cost, with the depreciation recoverable once the work is done.

Estimated payout
$22,000
Recoverable depreciation
$13,200

Actual cash value versus replacement cost

Actual cash value is replacement cost minus depreciation. On a fifteen-year-old roof with a twenty-year life, that can be three quarters of the value gone before the deductible is even applied.

Replacement cost cover pays the full cost of an equivalent new item - but usually in two stages. The insurer pays the depreciated amount first, and releases the recoverable depreciation once you have actually completed the work and submitted the invoices.

What the two-stage payment means in practice

It means you have to fund the gap between the first cheque and the final bill, then reclaim it. On a large loss that gap can be tens of thousands of dollars, and there is normally a deadline for completing the work and claiming the balance.

Missing that deadline forfeits the recoverable depreciation entirely, which turns a replacement cost policy into an actual cash value one after the fact. Note the deadline as soon as the first payment arrives.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • Actual cash value is replacement cost reduced by the depreciation percentage entered. The settlement basis chooses which figure the payout is built from.
  • Salvage value is deducted before the deductible, which is how most adjusters sequence it.
  • This is an estimate. Only your adjuster, working from the policy wording and the actual damage, can determine what is payable.
  • All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

How is depreciation determined?

Adjusters use the age of the item, its expected life and its condition. Depreciation schedules vary by carrier, and the figure is frequently negotiable if you can evidence better condition or longer remaining life.

What is recoverable depreciation?

On a replacement cost policy, the amount held back from the first payment and released once the repair or replacement is completed and documented.

Is the deductible taken before or after depreciation?

After. Depreciation reduces the claim value first; the deductible then comes off what remains.

Can I dispute a settlement?

Yes. Most policies contain an appraisal provision for valuation disputes. Independent estimates and contractor quotes are the usual evidence.

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