Calculating opportunity cost is an integral part of sound business decision-making. Simply put, it’s the evaluation of potential gains lost or foregone when choosing one course of action over another. When making a business decision, it’s important to weigh the costs and benefits of each option before determining which route to take. Opportunity cost helps you do this by providing an objective means of assessing the trade-offs involved. It forces you to think beyond just the immediate costs and evaluate your alternatives more thoughtfully. Put simply, calculating opportunity cost can help you make better decisions for your business.