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 ($)