opportunity cost

American  

[op-er-too-ni-tee kawst] / ˌɒp ərˈtu nɪ ti ˌkɔst /

noun

Economics.

1. the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.

   The company cannot afford the opportunity cost attached to policy decisions made by the current CEO.

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opportunity cost British  

noun

1. economics the benefit that could have been gained from an alternative use of the same resource

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Etymology

Origin of opportunity cost

First recorded in 1910–15

Compare meaning

How does opportunity-cost compare to similar and commonly confused words? Explore the most common comparisons:

• trade-off vs. opportunity cost

Example Sentences

Over any longer period, the opportunity cost of holding it is likely to exceed that of poor timing in the stock market.

From The Wall Street Journal • May 28, 2026

But the opportunity cost of tying up $160,000 with the IRS, along with potential capital-gains taxes from liquidating investments, likely approaches the cost of simply taking the RMD.

From MarketWatch • Mar. 23, 2026

If that happens, the monetary backdrop would become “increasingly supportive for precious metals, including silver, as the opportunity cost of holding non-yielding assets declines.”

From MarketWatch • Feb. 25, 2026

“It may help you avoid some fraction of the selloffs, but you incur a huge opportunity cost in losing out on the run-ups.”

From The Wall Street Journal • Feb. 13, 2026

The nomination also bolstered the U.S. dollar, which raised the opportunity cost of holding dollar-denominated assets.

From Barron's • Feb. 3, 2026