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

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

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

From Slate ● Jun. 22, 2026

“I don’t think anybody is going to change a policy on a year or two of performance, but the opportunity cost of not having that exposure in your portfolio has increased pretty significantly,” Yates says.

From Barron's ● Jun. 10, 2026

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

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