This opportunity cost calculator helps you determine the potential benefits you could miss when choosing one option over another.
Opportunity Cost Calculator
How to Use the Calculator
Enter the monetary value of option A and option B in their respective fields and click on ‘Calculate’. The calculator will compute the opportunity cost, which is the value of the next best alternative foregone.
How the Calculator Works
This calculator subtracts the value of option A (the chosen option) from the value of option B (the next best alternative) to determine the opportunity cost. The formula used is:
Opportunity Cost = Value of Option B – Value of Option A
Limitations
The calculator assumes that the values entered are monetary and does not account for non-monetary factors such as personal satisfaction or strategic value. Additionally, it is important to note that the simplest form of opportunity cost is calculated here, and real-world applications may require a more in-depth analysis beyond the scope of this tool.