Enter the book value ($) and the salvage value ($) into the Sunk Cost Calculator. The calculator will evaluate and display the Sunk Cost. 

Sunk Cost Formula

The following formula is used to calculate the Sunk Cost. 

SC = BV – SV

  • Where BC is the Sunk Cost ($)
  • BV is the book value ($) 
  • SV is the salvage value ($) 

How to Calculate Sunk Cost?

The following example problems outline how to calculate Sunk Cost.

Example Problem #1:

  1. First, determine the book value ($). The book value ($) is given as 142.
  2. Next, determine the salvage value ($). The salvage value ($) is provided as 20.
  3. Finally, calculate the Sunk Cost using the equation above: 

SC = BV – SV

The values given above are inserted into the equation below:

SC = 142 – 20 = 122 ($)


Example Problem #2: 

The variables needed for this problem are provided below:

book value ($) = 750

salvage value ($) = 300

Entering these values and solving gives:

SC = 750 – 300 = 450 ($)