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

It’s a clever workaround and it would be technically feasible, but you are correct in that the opportunity cost and potential capital-gains taxes from liquidating other assets probably outweigh those tax savings.

From MarketWatch • Mar. 23, 2026

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

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

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

From Salon • Dec. 18, 2025