Opportunity cost calculator
Opportunity cost is the value of the best option you give up when you choose. It counts what your time or money could have done instead, not just the price you pay, so a free ticket can cost you a paid shift.
You choose
Predict first
A friend gives you a free ticket to Saturday’s game. Going means skipping a 6-hour shift that pays $25 an hour. What does the ticket cost you?
Worked example
A weekend workshop costs nothing to attend but takes 10 hours you could spend on freelance work at $40 an hour. The workshop is worth about $300 to you.
- Price of the workshop: $0.
- Best thing it displaces: 10 hours × $40 = $400 of work.
- Its full cost is $400, against $300 of value.
The workshop leaves you $100 behind the freelance work. A $0 price isn't a $0 cost.
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