Insurance Deductible Payout Calculator

How does a deductible affect an insurance payout?

A deductible reduces the amount payable under the policy. Its value may be fixed or based on a percentage of a policy-defined amount. Confirm the base and the order in which limits and deductions apply.

Worked example

With $10,000 covered damage, a $1,000 deductible, $2,000 recoverable depreciation, and no limit restriction, the initial total is $7,000. The illustrative final total is $9,000 if the policy releases the $2,000 holdback.

How this tool works

This example model adjusts covered damage, subtracts depreciation to find ACV, caps that amount at the coverage limit and then subtracts the deductible once. In RCV mode, the potential final basis restores recoverable depreciation only. Prior payments reduce remaining amounts, not the covered loss.

What to check before using the result

Start with replacement-cost damage before depreciation. Entering an already-depreciated number will count depreciation twice. This is an illustrative settlement model, not a coverage or claim determination.

NAIC: ACV and replacement cost

Reviewed by Deepak Softech · November 12, 2026

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