Total Loss Calculator

What Is a Total Loss?

A vehicle is considered a total loss when the cost to repair it is too high compared to its value before the accident.

Insurance companies do not look at emotion or convenience. They look at math.

The exact rule depends on where you live. Some states use a percentage rule, while others use a total loss formula. This calculator supports both.

What a Total Loss Calculator Does

A total loss calculator estimates three main things:

1. Actual Cash Value (ACV) of your car before the accident
2. Whether the car qualifies as a total loss under your state rules
3. Estimated insurance payout, after your deductible

It gives you a clear picture of where you stand before you speak with an insurance adjuster.

Information You Enter Into the Calculator

Each input plays a role in the final result. Here is what the calculator asks for and why it matters.

Vehicle Details

• Year, make, model, trim
  These define the starting point for value.
• Original purchase price
  Used as the base before depreciation.
• Current mileage
  Higher mileage lowers value.
• Pre-accident condition
  Excellent, good, fair, or poor condition adjusts the value up or down.

Accident and Cost Details

• Repair cost estimate
  The total amount needed to fix the car.
• Estimated salvage value
  What the damaged vehicle is worth if sold as-is.
• Insurance deductible
  The amount you must pay out of pocket.

Location

• State or province
  This determines the legal total loss threshold.

How Actual Cash Value (ACV) Is Calculated

Actual Cash Value is not the same as what you paid for the car. It reflects depreciation.

This calculator estimates ACV using three steps:

1. Age-Based Depreciation

• First year: about 15%
• Each year after: about 10% more
• Depreciation is capped to prevent unrealistic values

2. Mileage Adjustment

• Average mileage is assumed at 12,000 miles per year
• Extra mileage reduces value further

3. Condition Factor

• Excellent condition keeps full value
• Poor condition reduces value significantly

Formula (simplified):
Purchase Price × (1 − depreciation) × condition factor

The result is the car’s estimated market value just before the accident.

How the Calculator Decides Total Loss

The calculator supports two legal methods.

1. Percentage Threshold States

In these states, a car is a total loss if:

Repair Cost ≥ X% of Actual Cash Value

Common thresholds include:

• 60%
• 70%
• 75%
• 80%

If repairs cross that line, the car is totaled.

2. Total Loss Formula States

In these states, the rule is:

Repair Cost + Salvage Value ≥ Actual Cash Value

If fixing and reselling the car costs more than it was worth, it is a total loss.

The calculator automatically applies the correct rule based on your selected state or province.

Insurance Payout Calculation

Once total loss status is decided, the calculator estimates what the insurance company should pay.

If the Car Is a Total Loss

• Insurance payout = ACV − deductible
• You are paid the value of the car, not the repair cost

If the Car Is Not a Total Loss

• Insurance payout = Repair cost − deductible
• The insurer pays to fix the vehicle

This gives you a realistic expectation before negotiations begin.

Financial Comparison: Repair vs Salvage

The calculator also compares:

• Cost to repair the car
• Value of the car as salvage

This helps answer a practical question:
Does it make financial sense to keep and repair the vehicle?

Sometimes a car is not legally totaled but still a poor financial choice to fix. This section highlights that gap.

Why This Calculator Is Useful

A total loss calculator helps you:

• Understand insurance decisions before they are made for you
• Spot low settlement offers
• Prepare for discussions with adjusters
• Decide whether to repair, replace, or walk away
• Avoid emotional decisions after an accident

It turns a confusing situation into something measurable.

Important Limitations to Know

This calculator provides estimates, not guarantees.

Actual outcomes may vary due to:

• Local used car market prices
• Insurance company policies
• Additional damage found during repairs
• Taxes, fees, or title rules

Still, having an estimate puts you in a stronger position than guessing.