Enter the auction price ($) and the liabilities ($) into the Liquidation Price Calculator. The calculator will evaluate and display the Liquidation Price. 

Liquidation Price Formula

The following formula is used to calculate the Liquidation Price. 

LP = AP - L
  • Where LP is the Liquidation Price ($)
  • AP is the auction price ($) 
  • L is the liabilities ($) 

To calculate a liquidation price, subtract the liabilities from the auction price.

How to Calculate Liquidation Price?

The following example problems outline how to calculate Liquidation Price.

Example Problem #1:

  1. First, determine the auction price ($).
    1. The auction price ($) is given as: 400,000.
  2. Next, determine the liabilities ($).
    1. The liabilities ($) is provided as: 80,000.
  3. Finally, calculate the Liquidation Price using the equation above: 

LP = AP – L

The values given above are inserted into the equation below:

LP = 400,000 – 80,000 = 320,000.00 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

auction price ($) = 30,000

liabilities ($) = 10,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

LP = AP – L = ?