Opportunity Cost Calculator

Calculate the potential benefit you missed out on when choosing one option over another.

Investment Options

Return on Best Forgone Option ($)

The value of the choice you didn't pick.

Return on Chosen Option ($)

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

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.

Fun Facts

Formula: Opportunity Cost = Return on Best Forgone Option - Return on Chosen Option

Used with this

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