Before making a large purchase, see what that money would grow to in the future if it had been invested instead.
Opportunity Cost Calculator
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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.
Frequently Asked Questions
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.