Enter the total cost ($) and the explicit cost ($) into the Implicit Costs Calculator. The calculator will evaluate and display the Implicit Costs.
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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 ($)
To calculate the implicit cost, subtract the explicit cost from the total cost.
How to Calculate Implicit Costs?
The following example problems outline how to calculate Implicit Costs.
Example Problem #1:
- First, determine the total cost ($). The total cost ($) is given as 5000.
- Next, determine the explicit cost ($). The explicit cost ($) is provided as 1000.
- Finally, calculate the Implicit Costs using the equation above:
IC = TC – EC
The values given above are inserted into the equation below:
IC = 5000 – 1000 = 4000 ($)
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 ($)