Investment Opportunity Cost Calculator

Current Purchase Price ($)

Expected Annual Return (%) S&P 500 historical average is ~8-10%.

Time Horizon (Years)

FUTURE VALUE IN 30 YEARS $12,075

By spending $1,200 today, you are giving up $10,875 in potential growth.

What the Tool Does & Who It’s For

The "Wait-to-Buy" calculator is for anyone trying to decide between a luxury purchase and long-term investing. It uses the power of **compound interest** to show you the "opportunity cost"—the money you lose by not having that cash working for you in the market.

How to Use the Calculator

Enter the price of the item you want to buy today. Set your expected annual return (the stock market historically returns about 8% to 10% after inflation). Finally, set your time horizon. If you are 25 today, you might set this to 40 years to see what that purchase costs your 65-year-old self.

Why Opportunity Cost Matters

Every dollar has a "job." When you spend a dollar on a depreciating asset (like a car or a phone), that dollar can no longer earn interest. Over long periods, even small amounts of money turn into massive sums. This tool helps you visualize that trade-off so you can make informed financial decisions.

Investment FAQ

Is an 8% return guaranteed?

No. The stock market fluctuates. However, over any 20-year period in history, the S&P 500 has averaged a positive return.

Should I never buy anything fun?

Not at all. The goal is "conscious spending." This tool simply ensures you know the true price of your choices.