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

“When the risk-free rate rises, the opportunity cost of holding a non-yielding asset increases, and Bitcoin trades as a liquidity-sensitive risk asset rather than a safe haven,” she added.

From Barron's ● Jun. 25, 2026

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

From Slate ● Jun. 22, 2026

As gold offers no yield, the opportunity cost of holding it rises when interest rates increase.

From MarketWatch ● Jun. 19, 2026

Higher interest rates raise the opportunity cost of holding non-yielding assets like bullion.

From The Wall Street Journal ● Jun. 18, 2026

It implies a cash opportunity cost of some A$30 million.

From The Wall Street Journal ● Apr. 21, 2026