Enter the overall costs ($) and the sunk costs ($) into the Calculator. The calculator will evaluate the Avoidable Cost. 

Avoidable Cost Formula

AVC = TC - SC

Variables:

  • AVC is the Avoidable Cost ($)
  • TC is the overall costs ($)
  • SC is the sunk costs ($)

To calculate the Avoidable Cost, subtract the sunk costs from the total costs.

How to Calculate Avoidable Cost?

The following steps outline how to calculate the Avoidable Cost.

  1. First, determine the overall costs ($). 
  2. Next, determine the sunk costs ($). 
  3. Next, gather the formula from above = AVC = TC – SC.
  4. Finally, calculate the Avoidable Cost.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

overall costs ($) = 700

sunk costs ($) = 200