Actual Cash Value (ACV) Calculator







Formulas

The formula used in the calculations is:

\[ \text{ACV} = \text{purchase price} \times \frac{\text{expected life} - \text{current life}}{\text{expected life}} \]

Description

This calculator computes the actual cash value (ACV) of an asset based on the input values of purchase price, expected life, and current life.

Example Calculation

Let's assume the following:

Calculate the actual cash value (ACV):

\[ \text{ACV} = 250,000 \times \frac{10 - 3}{10} = 250,000 \times 0.7 = 175,000 \]

Therefore, the actual cash value (ACV) of the car is $175,000.