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Opportunity Cost Calculator

Calculate the future value of a skipped purchase.

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Before making a large purchase, see what that money would grow to in the future if it had been invested instead.

Cost of the Item/Purchase

Years to Grow

Expected Annual Return (%)

Enter your details to see results.

How This is Calculated

Formula:

Opportunity Cost = Future Investment Value of Alternative Capital Allocation - Return on Chosen Action

Calculates the future capital value forfeited by spending liquid cash rather than investing it at an expected market rate of return.

Sources & Assumptions: Economic time-value and investment opportunity cost principles.

How to Use This Calculator

Enter the cost of the item you want to buy, and the expected investment return if you invested it instead.

What is opportunity cost?

It is the potential benefit you lose out on when you choose one alternative over another—in this case, buying an item instead of investing the cash.

What is the core lesson of the Opportunity Cost Calculator?

The Opportunity Cost Calculator teaches behavioral finance: money spent on a depreciating asset today robs you of exponential growth tomorrow.

Can the Opportunity Cost Calculator stop impulse buys?

Yes! Seeing that a $2,000 TV today actually costs you $15,000 in retirement via the Opportunity Cost Calculator is a powerful deterrent.

What return rate should I use in the Opportunity Cost Calculator?

The Opportunity Cost Calculator defaults to 7%, which is the historical inflation-adjusted return of the S&P 500.

Is the Opportunity Cost Calculator the same as compound interest?

Yes, the math is identical. The Opportunity Cost Calculator just frames it psychologically around a missed purchase.

Results are for informational purposes only and do not constitute financial advice. Always consult a qualified financial professional.