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 ($) 

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 ($)