Calculate the potential benefit you missed out on when choosing one option over another.
Investment Options
The value of the choice you didn't pick.
The value of the choice you actually picked.
Analysis
Opportunity Cost$400.00Net loss by not choosing the best option
Potential Efficiency Loss33.3%Percentage of the best possible return missed
About this calculator
Overview
Opportunity cost is the value of the next best alternative that is given up when a choice is made. It represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
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Pro Tips
Opportunity cost is not always about money; it can be about time, energy, or any limited resource.
When evaluating investments, compare the expected return of your choice against a benchmark like the S&P 500.
Business owners use this to decide between different projects or equipment purchases.
Remember that every choice has an opportunity cost, even doing nothing.
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Fun Facts
Formula: Opportunity Cost = Return on Best Forgone Option - Return on Chosen Option
