Liquidation Price Calculator

Formula

The formula to calculate the Liquidation Price (LP) is:

\[ LP = AP - L \]

Where:

$LP$ is the Liquidation Price ($)
$AP$ is the auction price ($)
$L$ is the liabilities ($)

What is Liquidation Price?

Liquidation Price refers to the amount of money that remains after selling an asset and paying off any associated liabilities. This metric is useful for understanding the net value of an asset in a liquidation scenario.

Example Calculation

Let's assume the following values:

Auction Price (AP) = $10000
Liabilities (L) = $3000

Using the formula to calculate the Liquidation Price (LP):

\[ LP = AP - L = 10000 - 3000 = 7000 \text{ dollars} \]

The Liquidation Price (LP) is $7000.