One of the most helpful software you can use is Microsoft Excel. It is possible to do an endless number of things with a dataset by utilizing Excelâ€™s capabilities and tools. In this article, weâ€™ll go over the steps necessary to create **Opportunity Cost Calculator**. Making decisions based on opportunity costs is essential to use resources effectively to maximize economic returns. In light of this, the following tutorial will focus on the step-by-step process of creating an **Opportunity Cost Calculator** inÂ Excel.

**Table of Contents**hide

## What Is Opportunity Cost?

**Opportunity Cost** is typically referred to as the value of the next-best choice and is also known as the **Alternative Cost**. In other words, the **Opportunity Cost** is a word used in economics to describe the worth of what youâ€™ll need to sacrifice to pick another option. When deciding, youâ€™ll factor in the **Opportunity Cost** and think about what youâ€™ll give up. A key benefit of marginal utility is that it facilitates examining multiple options, enabling better decision-making.

**Opportunity Cost**

Opportunity Cost = The Sacrificed Made / The Gain Obtained

Opportunity Cost = Next Best Alternative Return â€“ Chosen Option Return

## Opportunity Cost Calculator in Excel: 3 Suitable Examples

Creating an **Opportunity Cost Calculator** in Excel can be difficult if we do not know the proper steps. This article will walk you through the five stages of creating an alternative cost calculator in Excel. We will use a typical formula suitable for the first example and calculate the opportunity cost. When choosing **an Item Over Another**, we will calculate opportunity costs throughout the first model. We generate a calculator for the **Scenarios-based** opportunity cost in the following demonstration. In the last rally, we will consider the profit from the monitor as the Next Best Alternative and the laptop profit as the Chosen Option. We will apply the second formula to calculate the opportunity cost of the monitor. Moreover, we will choose the itemâ€™s selling price in a **Dynamic** way. To quickly comprehend the technique, carefully follow these steps.

**Notes**

I have yet to say that I have been working with the **Microsoft Excel 365** version for this post. Nevertheless, you are free to use any other edition that will provide you with the most significant amount of convenience.

### 1. Opportunity Cost Calculator When Choosing an Item Over Another

**Step 1: Opportunity Cost Model Construction in Excel**

The first and most crucial step is to construct an illustrative Data Model. Please follow the below directions to complete the assignment.

- First, create three columns titled
**Product Name**,**Cost Price**and**Selling Price**. - Second, make a section for the
**Maximum Quantity**in the range**F4:G6**. - After that, generate an information box named
**Initial Capital**in the field**B8:C8**.

- Finally, build a portion for the
**Profit Returns**and the**Opportunity Cost**.

**Read More:** How to Use Cost Benefit Analysis Calculator in Excel

**Step 2: Fill Out the Data Model with the Necessary Information**

We will enter the necessary data into the data model to determine the **Opportunity Cost**. To complete the assignment, please follow the instructions provided below.

- First, input the name in the
**Product Name**column and then fill out the**PriceÂ**columns. - Afterwards, type the same name in the
**Quantity**table and insert the**Initial Capital**.

**Step 3: Round the Highest Amount of Quantity Using the INT Function**

Here, weâ€™ll use **the INT function** to round off the most significant quantity we can produce from the **Initial Capital**.

- Pick the
**G5**cell to start. - Second, type the equation shown below into the
**FormulaÂ**bar.

`=INT($C$8/C5)`

- Drag the
**AutoFill Handle**icon to the**G6Â**cell.

**Step 4: Calculation of Opportunity Cost Using the Formula**

Throughout this last section, we will apply some basic formulas and calculate the **Opportunity Cost**. Please follow these directions to the letter to complete the assignment.

- Start by picking the
**D12Â**cell. - Second, type into the
**Formula**bar the equation shown below.

`=(D5-C5)*G5`

- Later, move the
**AutoFill**icon to**D13**.

- Then, choose the
**G13Â**cell. - In the end, type into the
**Formula**bar the equation shown below.

`=D12-D13`

- The last step is to press
**Enter**or**Tab**.

### 2. Scenarios-Based Opportunity Cost Calculator in Excel

**Step 1: Build a Date Model to Calculate Opportunity Cost**

The first and foremost step is to create a **Data Model** for illustration purposes. This article will consider a model consisting of three tables and an information box. The first table will introduce the products and prices, and the following describes the sacrifice and gains quantities. Lastly, another table will display the **Opportunity Cost**. To accomplish the work, please follow the instructions below.

- First, create two columns titled
**Product Name**and**Cost Price**in the**B4:C6Â**range. - Second, build a table consisting of three columns named
**Scenarios**,**Monitor**and**Laptop**in the**E4:G8Â**field. - After that, in the
**B8:C8**range, generate an information box called**Initial Capital**.

- Last, we will take another two columns for
**Marginal Flow**and**Opportunity Cost**throughout the**B10:C14Â**range.

**Read More: **Truck Operating Cost Calculator in Excel

**Step 2: Input the Required Information in Data-model for Marginal Cost Calculator**

At this stage, we will input the intended information in the data model to calculate the **Opportunity Cost**. Here, we will sacrifice **Monitor Quantities** and gain **Laptop Quantities**. To finish the assignment, please follow the guidelines that are listed below.

- First, input the
**Product Name**, in this case,**Monitor**and**Laptop**. - Second, write the
**Cost Price**for the items. - After that, set the
**Initial Capital**to**$9000**.

- At this point, we will fill up the
**Scenarios**column and have four cases. - Later, put the values for the
**Marginal FlowÂ**column.

- Next, insert the down-ward quantities in the
**MonitorÂ**column. - Likewise, type upward quantities in the
**LaptopÂ**column.

**Read More: **How to Create Cost of Delay Calculator in Excel

**Step 3: Insert Excel VBA Code to Determine Opportunity Cost**

In this context, we will insert **VBA** code to calculate the **Opportunity Cost** utilizing the **Monitor** and **Laptop** columns. Here, we will declare four procedures for each scenario. Please be sure to follow the instructions outlined below to complete the job.

- Firstly, navigate to the
**DeveloperÂ**tab. - Second, choose the
**Visual BasicÂ**icon.

- After that, click on

**Insert** â†’ **Module**

- Input the following code in the
**ModuleÂ**box.

```
Sub Case1_OpportunityCost()
Â Â Â Range("C11").Select
Â Â Â ActiveCell.FormulaR1C1 = _
Â Â Â Â Â Â Â "=IFERROR((R[-7]C[3]-R[-6]C[3])/(R[-6]C[4]-R[-7]C[4]),""-"")"
End Sub
Sub Case1toCase2_OpportunityCost()
Â Â Â Range("C12").Select
Â Â Â ActiveCell.FormulaR1C1 = _
Â Â Â Â Â Â Â "=IFERROR((R[-7]C[3]-R[-6]C[3])/(R[-6]C[4]-R[-7]C[4]),""-"")"
End Sub
Sub Case2toCase3_OpportunityCost()
Â Â Â Range("C13").Select
Â Â Â ActiveCell.FormulaR1C1 = _
Â Â Â Â Â Â Â "=IFERROR((R[-7]C[3]-R[-6]C[3])/(R[-6]C[4]-R[-7]C[4]),""-"")"
End Sub
Sub Case3toCase4_OpportunityCost()
Â Â Â Range("C14").Select
Â Â Â ActiveCell.FormulaR1C1 = _
Â Â Â Â Â Â Â "=IFERROR((R[-7]C[3]-R[-6]C[3])/(R[-6]C[4]-R[-7]C[4]),""-"")"
End Sub
```

- Later, pressÂ
**Ctrl + S**Â or tap the**Save**icon with the**Macro Enabled**(**xlsm**) extension.

**Step 4: Generate Buttons for Suboptimality Cost Calculator**

To keep the calculation of **Opportunity Cost** automatic, we will generate four buttons and assign previously created macros. To finish the work, make sure to adhere to the directions provided below.

- First of all, go to the
**DeveloperÂ**tab. - Secondly, from the
**Controls**group, click on the**InsertÂ**symbol.

- After that, choose the
**Button**icon from the**Form ControlsÂ**section.

- Now, draw a button for
**Case-1**. - Subsequently, the
**Assign Macro**window will appear. - Presently, choose
**Case1_OpportunityCost**, and hit**OK**.

- Latterly, name the button
**Calculate**. - Due to this, our desired button will look like the below one.

- Similarly, draw another button for
**Case-1 to Case-2**marginal flow. - Later, assign the
**Case1toCase2_OpportunityCost**procedure and click**OK**.

- Make a second button representing the transition from
**Case-2 to Case-3**marginal flow. - Assign the
**Case2toCase3_OpportunityCost**process, and then press the**OK**.

- Draw the last button for
**Case-3 to Case-4**marginal flow. - Next, click
**OK**after assigning the**Case3toCase4_OpportunityCost**sub-method.

- At this stage, our
**Opportunity Cost Calculator**will look like the below one.

**Step 5: Display and Test the Opportunity Cost Calculator in Excel**

Lastly, we will display the calculator and click the Calculate buttons to determine the **Opportunity Cost** for each **Marginal Flow**. To successfully do the task, it is imperative that you carefully follow the directions provided below.

- To begin, click the first button to calculate
**Case-1**.

- Due to this, we will get an outcome like the below one.

- After that, press all the following buttons to display the
**Opportunity Cost**.

### 3. Calculate Opportunity Cost With Dynamic Selling Price in Excel

**Step 1: Create a Data Model for Opportunity Cost Analysis**

Making a **Data Model** for demonstration purposes is the first and most crucial step. Here, weâ€™ll look at a sample layout with four elements: two tables and two boxes with supplementary data. Please use the following guidelines to complete the task.

- First, make a table containing the
**Product Name**and**Cost Price**column in**B4:C6**. - Second, take another section for the
**Maximum Quantity**in the range**E4:F6**. - After that, create an information box titled
**Initial Capital**.

- Next, take another information section for the
**Profit Returns**and the**Opportunity Cost**.

**Step 2: Input Necessary Data into the Data Model**

We will enter the necessary data into the data model to determine the **Opportunity Cost**.

- First, input the intended price in the
**Cost PriceÂ**column. - After that, put
**9000**in the**C8Â**cell.

**Step 3: Utilize the INT function to Round the Maximum Quantity**

In this subsection, we will calculate the maximum quantity of an item from the **Initial Capital** and apply **the INT function** to round the output.

- To begin, select the
**F5**Â cell. - Second, insert the below equation in the
**FormulaÂ**bar.

`=INT($C$8/C5)`

- Later, drag the
**AutoFill Handle**icon to**F6**.

**Step 4: Opportunity Cost Calculation Running Excel VBA Code**

Finally, weâ€™ll execute the **VBA** code to calculate the alternative cost when selecting one item over another. Please follow the directions given below to complete the task.

- First, navigate to the
**Developer**tab and choose**Visual Basic**.

- After that, click on

**Insert** â†’ **Module**

- Later, insert the following code in the
**ModuleÂ**box.

```
Sub CalculateOpportunityCost()
Dim NextBestAlternativeReturn As Double
Dim NextBestAlternativeCostPrice As Double
Dim ChosenOptionReturn As Double
Dim ChosenOptionCostPrice As Double
Dim nextBestReturnUnitPrice As Double
Dim nextBestReturnUnitQuantity As Double
Dim chosenReturnUnitPrice As Double
Dim chosenReturnUnitQuantity As Double
Dim opportunity_cost As Double
nextBestReturnUnitQuantity = Range("F5").Value
NextBestAlternativeCostPrice = Range("C5").Value
chosenReturnUnitQuantity = Range("F6").Value
ChosenOptionCostPrice = Range("C6").Value
nextBestReturnUnitPrice = InputBox("Enter the return of the next best alternative unit price:")
chosenReturnUnitPrice = InputBox("Enter the return of the chosen option unit price:")
NextBestAlternativeReturn = (nextBestReturnUnitPrice - NextBestAlternativeCostPrice) * nextBestReturnUnitQuantity
ChosenOptionReturn = (chosenReturnUnitPrice - ChosenOptionCostPrice) * chosenReturnUnitQuantity
Range("D12").Value = NextBestAlternativeReturn
Range("D13").Value = ChosenOptionReturn
End Sub
```

- Next, pressÂ
**F5Â**or click the**RunÂ**icon.

- Eventually, the Microsoft Excel window will appear.
- Latterly, input the
**Next Best Alternative**unit price and hit**OK**.

- Afterwards, insert the value of the
**Chosen Option**unit price. - Later, hit
**OK**from the Microsoft Excel input box.

- Consequently, we will see the
**Profit Returns**in the range of**D12:D13**. - Then, pick cell
**F13**. - In the end, type the equation shown below into the
**Formula**bar.

`=D12-D13`

- Pressing
**Enter**or**Tab**is the last step.

**Download Practice Workbook**

Please click on the link below this paragraph if you want a free copy of the sample workbook discussed in the presentation.

## Conclusion

You can create an **Opportunity Cost Calculator** in Excel by following the steps. Please provide any additional recommendations or enhanced techniques as you continue to use them. Remember to put your thoughts, questions, and instructions in the space provided.

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