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

See Examples For:

opportunity cost

Even after recognizing other financial benefits of ownership, such as a tax code that puts a thumb on the scale toward buying, opportunity cost makes the returns to homeownership considerably less spectacular.

From The Wall Street Journal ● Sep. 24, 2026

Those who refuse to play pay a high price in short-term opportunity cost, but win in the long run.

From The Wall Street Journal ● Aug. 28, 2026

If you took $100,000 out of investments and they earned an average 7% annually for 20 years, the opportunity cost would be significant.

From MarketWatch ● Aug. 13, 2026

“The market is saying there is an opportunity cost to holding software stocks,” he said.

From MarketWatch ● Jun. 30, 2026

With yield premiums narrow in the corporate market, the opportunity cost of being in Treasuries is reduced.

From Barron's ● Jun. 26, 2026