Enter the accounting costs ($) and the implicit costs ($) into the Economic Cost Calculator. The calculator will evaluate and display the Economic Cost ($).

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- Accounting Profit Calculator
- Implicit Cost Calculator
- Economic Profit Calculator

## Economic Cost Formula

The following formula is used to calculate the Economic Cost ($).

EC = AC - IC

- Where EC is the Economic Cost ($)
- AC is the accounting costs ($)
- IC is the implicit costs ($)

To calculate the economic cost, subtract the implicit cost from the accounting costs.

## How to Calculate Economic Cost?

The following example problems outline how to calculate Economic Cost ($).

Example Problem #1:

- First, determine the accounting costs ($). The accounting costs ($) is given as 6,500.
- Next, determine the implicit costs ($). The implicit costs ($) is provided as 1,500.
- Finally, calculate the Economic Cost ($) using the equation above:

EC = AC – IC

The values given above are inserted into the equation below:

EC = 6500 – 1500 = 5000 ($)

Example Problem #2:** **

The variables needed for this problem are provided below:

accounting costs ($) = 1,500

implicit costs ($) = 200

Entering these values and solving gives:

EC = AC – IC = 1300.00 ($)