Enter the maximum cost ($) and the probability of cost (%) into the Expected Cost Calculator. The calculator will evaluate and display the Expected Cost. 

Expected Cost Formula

The following formula is used to calculate the Expected Cost. 

EC = MC * P(x)/100

  • Where EC is the Expected Cost ($)
  • MC is the maximum cost ($) 
  • P(x) is the probability of cost (%) 

How to Calculate Expected Cost?

The following example problems outline how to calculate Expected Cost.

Example Problem #1:

  1. First, determine the maximum cost ($). The maximum cost ($) is given as 5,000.
  2. Next, determine the probability of cost (%). The probability of cost (%) is provided as 70.
  3. Finally, calculate the Expected Cost using the equation above: 

EC = MC * P(x)/100

The values given above are inserted into the equation below:

EC = 5000 * .70 = 2500 ($)


Example Problem #2: 

The variables needed for this problem are provided below:

maximum cost ($) = 8,000

probability of cost (%) = 25

Entering these values and solving gives:

EC = MC * P(x)/100 = 2000 ($)