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

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## 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:

- First, determine the auction price ($).
- The auction price ($) is given as: 400,000.

- Next, determine the liabilities ($).
- The liabilities ($) is provided as: 80,000.

- 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** = ?**