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

“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

If that happens, the monetary backdrop would become “increasingly supportive for precious metals, including silver, as the opportunity cost of holding non-yielding assets declines.”

From MarketWatch • Feb. 25, 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

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