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 (\$)