Work hours & pay
Opportunity cost calculator
Enter what each option returns, pick the one you lean toward and see what you give up and whether the choice comes out ahead.
Opportunity cost is only the single best alternative you forgo, not the sum of every option you did not pick.
How opportunity cost is calculated
Opportunity cost is the value of the best alternative you give up when you commit to something. With two options it is simply the return of the one you do not choose. The net difference tells you whether the choice pays: net = return you keep − return you give up. A positive net means your pick beats the alternative; a negative net means the road not taken was worth more.
Suppose Option A returns $5,000 and Option B returns $3,000, and you choose A. The opportunity cost is the $3,000 from B that you forgo, and the net difference is 5,000 − 3,000 = $2,000 in your favour. Switch to choosing B and the opportunity cost becomes the $5,000 from A, leaving a net of −$2,000: B costs you more than it returns relative to A. The same arithmetic works in hours when the choice is about time rather than money.
| You keep | You give up | Opportunity cost | Net difference |
|---|---|---|---|
| $5,000 | $3,000 | $3,000 | +$2,000 |
| $3,000 | $5,000 | $5,000 | −$2,000 |
| 12 h | 8 h | 8 h | +4 h |
Using it to decide well
The honest version of a decision compares what you gain against what you forgo, not against zero. A side project that earns $2,000 looks good until you notice the overtime shift you skipped would have paid $2,500: its true cost is that forgone $2,500, and the project is $500 behind. Keep the two returns on the same footing: same time period, same units, and ideally returns net of their own costs, so you are comparing like with like. This tool compares exactly two options; with three or more, the opportunity cost is still just the single best one you pass up, so compare your pick against that one, not against all the others added together. It weighs only the figures you enter, so fold in risk and non-financial value yourself before committing.
Frequently asked questions
What is opportunity cost in simple terms?
It is what you give up to get something else, measured as the return of the best alternative you turn down. Choosing a $5,000 option over a $3,000 one carries a $3,000 opportunity cost.
Is opportunity cost the total of all other options?
No. It is only the single best alternative you forgo. If you pass up options worth $3,000 and $1,000, the opportunity cost is $3,000, not the $4,000 total.
Can I use it for time instead of money?
Yes. Enter each option's return in hours and switch the measure to hours. The forgone hours are the opportunity cost, and the net shows which use of your time comes out ahead.