opportunity cost

noun

: the added cost of using resources (as for production or speculative investment) that is the difference between the actual value resulting from such use and that of an alternative (such as another use of the same resources or an investment of equal risk but greater return)

Examples of opportunity cost in a Sentence

Recent Examples on the Web

Arguably, the most important opportunity cost for Thompson is losing the ability to save for the future, at least right now. — Ryley Amond, CNBC, 17 Sep. 2026

But the difference in opportunity cost between Round 4 and Round 8 is pretty substantial. — Ben Gretch, New York Times, 4 Sep. 2026

Time with family, a hobby, or simply doing nothing has an opportunity cost. — Bydoug Ashburn, Encyclopedia Britannica, 31 Aug. 2026

The New Capital-Allocation Discipline The era of free money encouraged companies to chase growth, acquisitions and financial engineering because cash carried enormous opportunity cost. — Robert Daugherty, Forbes.com, 23 Aug. 2026

Word History

First Known Use

1894, in the meaning defined above

Rhymes for opportunity cost

• accost
• crisscrossed
• defrost
• embossed
• exhaust
• recrossed
• uncrossed
• bossed
• crossed
• dost
• glossed
• lost

Legal Definition

opportunity cost

noun

op·​por·​tu·​ni·​ty cost

: the cost of making an investment that is the difference between the return on one investment and the return on an alternative