Opportunity Cost Calculator

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. 

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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 ($) 

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 ($)

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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 ($)