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

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

“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

Lower interest rates typically benefit precious metals by reducing the opportunity cost of holding a non-yielding asset relative to interest-bearing bonds.

From The Wall Street Journal • Jan. 29, 2026

There’s also an opportunity cost: Gold doesn’t generate income or dividends, so any money you put in results in lost income, points out Charles E. Rinehart, chief investment officer of Johnson Investment Counsel in Cincinnati.

From Barron's • Jan. 8, 2026

Assuming an average 8% annual return, such an expenditure has an opportunity cost of roughly $570,000 in foregone stock-market returns over 20 years.

From MarketWatch • Jan. 5, 2026