Enter the return on the best option ($) and the return on the chosen option ($) into the Opportunity Cost calculator. The calculator will evaluate and display the Opportunity Cost.

## Opportunity Cost Formula

The following formula is used to calculate the Opportunity Cost.

OC = RB - RC
• Where OC is the Opportunity Cost ($) • RB is the return on the best option ($)
• RC is the return on the chosen option ($) To calculate the opportunity cost, subtract the return of the chosen option from the return of the best option. ## How to Calculate Opportunity Cost? The following example problems outline how to calculate Opportunity Cost. Example Problem #1: 1. First, determine the return on the best option ($). The return on the best option ($) is given as 5,000. 2. Next, determine the return on the chosen option ($). The return on the chosen option ($) is provided as 3,000. 3. Finally, calculate the Opportunity Cost using the equation above: OC = RB – RC The values given above are inserted into the equation below: OC = 5,000 – 3,000 = 2,000 ($)

Example Problem #2:

The variables needed for this problem are provided below:

return on the best option ($) = 2,500 return on the chosen option ($) = 500

Entering these values and solving gives:

OC = 2,500 – 500 = 2000 (\$)