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.

- First, determine the overall costs ($).
- Next, determine the sunk costs ($).
- Next, gather the formula from above = AVC = TC – SC.
- Finally, calculate the Avoidable Cost.
- 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