Enter the total cost ($) and the explicit cost ($) into the Implicit Costs Calculator. The calculator will evaluate and display the Implicit Costs. 

Implicit Costs Formula

The following formula is used to calculate the Implicit Costs. 

IC = TC – EC

  • Where IC is the Implicit Costs ($)
  • TC is the total cost ($) 
  • EC is the explicit cost ($) 

How to Calculate Implicit Costs?

The following example problems outline how to calculate Implicit Costs.

Example Problem #1:

  1. First, determine the total cost ($). The total cost ($) is given as 5000.
  2. Next, determine the explicit cost ($). The explicit cost ($) is provided as 1000.
  3. Finally, calculate the Implicit Costs using the equation above: 

IC = TC – EC

The values given above are inserted into the equation below:

IC = 5000 – 1000 = 4000 ($)


Example Problem #2: 

The variables needed for this problem are provided below:

total cost ($) = 8000

explicit cost ($) = 1500

Entering these values and solving gives:

IC = 8000 – 1500 = 6500 ($)