Enter the book value ($) and the salvage value ($) into the Sunk Cost Calculator. The calculator will evaluate and display the Sunk Cost.
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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 ($)
To calculate the sunk cost, subtract the salvage value from the book value.
How to Calculate Sunk Cost?
The following example problems outline how to calculate Sunk Cost.
Example Problem #1:
- First, determine the book value ($). The book value ($) is given as 142.
- Next, determine the salvage value ($). The salvage value ($) is provided as 20.
- Finally, calculate the Sunk Cost using the equation above:
SC = BV – SV
The values given above are inserted into the equation below:
SC = 142 – 20 = 122 ($)
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 ($)