Opportunity Cost Calculator

Compare financial decisions and their hidden costs

What is this? Compare financial decisions and their hidden costs. See what you give up when choosing one investment or business option over another.

Who it's for: Business professionals, investors, and entrepreneurs.
Option A
Option B
Comparison
Option A Final Value
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Option B Final Value
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Difference
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Opportunity Cost of A
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Risk-Adjusted Winner
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Break-even Risk Premium
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For educational purposes. Not financial advice.

Investment & Growth Tools

Tools that pair well with this calculator — selected by our team.

Betterment →
$1,250/ref (funded $50K+) — automated investing
Wealthfront →
$100/ref through Impact — automated investing
ToolBest ForNetwork
Betterment$1,250/ref (funded $50K+)Impact
Wealthfront$100/ref through ImpactImpact

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

What is opportunity cost in investing?

Opportunity cost is what you give up by choosing one investment over another. If you choose a CD paying 4% instead of a stock index fund averaging 10%, your opportunity cost is 6% per year. Understanding this prevents anchoring to supposedly safe investments that underperform.

How do you calculate opportunity cost?

Opportunity cost = Return on chosen investment - Return on best alternative. If you keep 50K in savings at 4% instead of investing at 10%, your annual opportunity cost is 3,000. Compound this over decades and it becomes massive.