How do I estimate an insurance payout?

Start with the covered loss amount, subtract depreciation if applicable, apply the deductible and cap the result at the policy limit.

What is the difference between a deductible and a threshold deductible?

A standard deductible is subtracted from the covered loss. A threshold deductible works like a trigger in this simplified model: if the loss does not exceed the threshold, payout is zero.

Why can the insurer payout differ?

Real claim settlements depend on policy terms, exclusions, evidence, depreciation method, repair estimates, deductible wording, limits and applicable law.

Insurance Claim Payout Calculator

Estimate an insurance claim payout from policy limit, claim loss amount, deductible, deductible type and depreciation.

Policy limit

Claim loss amount

Deductible

Deductible type

Depreciation

Estimate a claim payout

This calculator estimates a claim payout after depreciation, deductible and policy limit. It is a generic insurance math helper for scenario planning, not a claim decision.

Does not guarantee payment

Insurers decide claims from policy language, covered peril, exclusions, evidence, inspections, depreciation method, deductibles and applicable law.

Claim payout formulas

L oss a f t er d e p r ec ia t i o n = L oss \times (1 - \frac{D e p r ec ia t i o n}{100})

P a y o u t = min (max (0, L oss a f t er d e p r ec ia t i o n - D e d u c t ib l e), P o l i cy l imi t)

For threshold deductibles, the deductible works as a trigger in this simplified model: losses at or below the threshold pay zero, while larger covered losses are not reduced by the threshold amount.

What can change a real payout

The loss may be partly or fully excluded by the policy.
The insurer may use actual cash value, replacement cost or a repair network process.
A deductible may apply per claim, per item, per peril or as a percentage.
The policy limit may be per event, per item, per coverage type or aggregate.
Documentation, inspection and proof of loss can change the final settlement.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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