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

Ordinarily, I would not recommend taking money from your investment accounts as you’re paying tax on the withdrawals and getting hit by the lost opportunity cost of future returns.

From MarketWatch • Apr. 6, 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

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

The problem with this conception is the opportunity cost it exacts on the American reading public.

From Salon • Dec. 18, 2025