Enter the par value ($) and the repair costs ($) into the Foreclosure Cost Calculator. The calculator will evaluate and display the Foreclosure Cost.
Foreclosure Cost Formula
The following formula is used to calculate the Foreclosure Cost.
FC = PV - RC
- Where FC is the Foreclosure Cost ($)
- PV is the par value ($)
- RC is the repair costs ($)
To calculate the foreclosure cost, subtract the repair costs by the par value.
How to Calculate Foreclosure Cost?
The following example problems outline how to calculate Foreclosure Cost.
Example Problem #1:
- First, determine the par value ($). The par value ($) is given as 50,000.
- Next, determine the repair costs ($). The repair costs ($) is provided as 20,000.
- Finally, calculate the Foreclosure Cost using the equation above:
FC = PV – RC
The values given above are inserted into the equation below:
FC = 50,000 – 20,000 = 30,000.00 ($)
Example Problem #2:
The variables needed for this problem are provided below:
par value ($) = 140,000
repair costs ($) = 30,000
Entering these values and solving gives:
FC = PV – RC = 110,000.00 ($)