Enter the total purchase price ($) and the fair value of net assets ($) into the Distribution Cost Calculator. The calculator will evaluate and display the Distribution Cost. 

Distribution Cost Formula

The following formula is used to calculate the Distribution Cost. 

DC = PP – FVA

  • Where DC is the Distribution Cost ($)
  • PP is the total purchase price ($) 
  • FVA is the fair value of net assets ($) 

How to Calculate Distribution Cost?

The following example problems outline how to calculate Distribution Cost.

Example Problem #1:

  1. First, determine the total purchase price ($). The total purchase price ($) is given as 9000.
  2. Next, determine the fair value of net assets ($). The fair value of net assets ($) is provided as 2000.
  3. Finally, calculate the Distribution Cost using the equation above: 

DC = PP – FVA

The values given above are inserted into the equation below:

DC = 9000 – 2000 = 7000 ($)


Example Problem #2: 

The variables needed for this problem are provided below:

total purchase price ($) = 10000

fair value of net assets ($) = 7000

Entering these values and solving gives:

DC = 10000 – 7000 = 3000.00 ($)