What is Opportunity Cost?
Updated October 24, 2026
Opportunity cost is what you give up when you choose one option over another.
Every hour or dollar spent on one thing can't be spent on another.
It helps you pick the best use of your time.
Ask what else this time or money could be doing.
Example
Spending 10 hours on a project that earns $20 means skipping something that might earn more.
Questions people ask
Is it a real cost?
It's not money spent, but it's real value missed.
How do I use it?
Compare options before committing time or money.
Related
Fresh from the site
- Shooting star (quick story)
- Descending triangle (quick story)
- You don t need years of charting to catch bearish reversals (quick story)
Rather have AI trade for you?Get the free guide on hands free AI trading accounts.
Send me the free guide →
Work out your own number with the quit your job calculator, or take the passive income quiz.