Total Loss vs Repair Cost Calculator
Compare your vehicle's repair cost against its Actual Cash Value (ACV) to determine if it qualifies as a total loss under standard insurance thresholds.
Formulas Used
1. Total Loss Ratio (TLR):
TLR (%) = (Repair Cost ÷ ACV) × 100
2. Total Loss Threshold Test:
Total Loss if: Repair Cost ≥ (Threshold% × ACV)
The vehicle is declared a total loss when the repair cost meets or exceeds the threshold percentage of its ACV.
3. Total Loss Insurance Payout:
Total Loss Payout = ACV − Deductible
4. Repair Insurance Payout:
Repair Payout = Repair Cost − Deductible
5. Insurer Net Cost (Total Loss):
Net Cost = ACV − Salvage Value
The insurer pays ACV but recovers the salvage value by selling the wreck.
6. Diminished Value Estimate:
Diminished Value ≈ 10% × ACV
A rough industry rule-of-thumb; actual diminished value varies by damage severity, vehicle age, and market.
7. True Cost to Repair:
True Cost = Repair Cost + Diminished Value
Assumptions & References
- The Actual Cash Value (ACV) is the fair market value of the vehicle immediately before the loss, accounting for depreciation. It is typically determined by the insurer using tools like Kelley Blue Book, NADA Guides, or CCC ONE.
- The most common Total Loss Threshold in the United States is 75% (used by a majority of states). Some states use 80% or 100% (pure economic total loss). Always verify your state's specific threshold.
- Salvage Value is what the wrecked vehicle is worth to a salvage yard or at auction. The insurer typically retains the salvage unless the owner opts for a salvage title buyback.
- The 10% diminished value estimate is a simplified rule of thumb. The 17c formula used by some insurers calculates: Base Loss Value (10% of ACV) × Damage Multiplier × Mileage Multiplier.
- Deductibles apply to both repair and total loss claims under a standard collision or comprehensive policy.
- This calculator does not account for rental reimbursement, gap insurance, or state-specific total loss formulas (e.g., Texas uses a different statutory method).
- References: NAIC Auto Insurance Guide; Insurance Information Institute (iii.org); State Farm, GEICO, and Allstate total loss claim documentation; 17c Diminished Value Formula (Georgia Supreme Court, State Farm v. Mabry, 2001).