Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is Opportunity Cost?

By Keith Noonan – Updated Apr 17, 2025 at 12:16PM

Key Points

  • Opportunity cost is the missed gain from not choosing a better option.
  • Calculating future investment opportunity costs is complex and not always precise.
  • Consider opportunity costs to optimize financial and resource allocation decisions.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.