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.

---

opportunity cost British  

noun

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

---

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

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

From Barron's ● Jun. 26, 2026

A lengthy calculation is not worth the opportunity cost if the chance of success is extremely low.

From Slate ● Jun. 22, 2026

As it is more expensive to borrow today, the opportunity cost of tying up tens of millions of dollars in paintings is higher.

From The Wall Street Journal ● Apr. 26, 2026

It’s a clever workaround and it would be technically feasible, but you are correct in that the opportunity cost and potential capital-gains taxes from liquidating other assets probably outweigh those tax savings.

From MarketWatch ● Mar. 23, 2026

Gold often thrives when rates are lower and the opportunity cost of holding the metal is low.

From The Wall Street Journal ● Mar. 19, 2026