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 = ?