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

What are some of those opportunity costs that are taking place because of the bureaucracy pushing back on innovation or new ideas that don't seem to fit well within some bureaucrats' minds who have a great deal of authority? —Tax Notes Staff, Forbes.com, 29 July 2025

Wages rise, which means that the opportunity cost of unpaid activities like parenting also goes up. —New York Times, 24 July 2025

When considering taking on debt versus paying cash, look at all the factors, like the cost of the loan, possible tax benefits, and opportunity cost for cash purchases. —Kristin McKenna, Forbes.com, 23 July 2025

What’s less neutral, however, are the opportunity costs. —James Broughel, Forbes.com, 15 July 2025

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