Enter the accounting costs ($) and the implicit costs ($) into the Economic Cost Calculator. The calculator will evaluate and display the Economic Cost ($). Economic Cost Formula The following formula is used to calculate the Economic Cost ($).

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:

1. First, determine the accounting costs ($). The accounting costs ($) is given as 6,500.
2. Next, determine the implicit costs ($). The implicit costs ($) is provided as 1,500.
3. 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 (\$)