Opportunity Cost Calculator-tool for weighing opportunity costs

Example

A user is considering pursuing a master's degree but is uncertain about the financial and time commitments. The tool will help weigh the cost of not getting the degree (e.g., potentially slower career advancement or lower earnings) against the immediate financial strain and time investment required to complete the program.

Scenario

In this case, the Opportunity Cost Calculator would break down the costs of both options, such as lost earnings from not having the degree versus the tuition and time required to pursue it. The tool can help the user determine whether the long-term benefits of higher earning potential justify the short-term sacrifices.

Example

A person is deciding between moving to a new city for a job or staying in their hometown. The Opportunity Cost Calculator helps analyse the cost of relocation (including emotional, financial, and social costs) versus the career benefits and personal growth that might come with moving.

Scenario

This scenario would involve exploring factors such as cost of living differences, proximity to family and friends, and career opportunities. The calculator provides a detailed look at how the user's life may change in both the short and long term, based on their priorities.

Example

A business owner is unsure whether to invest in expanding their business or keep their operations steady. The Opportunity Cost Calculator can break down the potential gains from expansion versus the risks, assigning a ratio that visually presents the cost of acting versus not acting.

Scenario

For a business owner, this tool might weigh factors such as increased revenue from expansion, the cost of new equipment or facilities, and the risks of market downturns. It could help them decide if the potential benefits outweigh the risk, presenting the data in a ratio form like 3:1, meaning the potential benefits are three times greater than the costs.