You can’t calculate opportunity costs to an exact number, so it should just be used as an internal measure. Your business decisions may be more profitable when you factor these in.

Opportunity cost can cause individuals to forgo everyday luxuries and even regular experiences. For example, a person could spend $12 watching a matinee movie, or they could use it to buy lunch.

When calculating opportunity costs, it’s important to consider more than just flat returns, however. You should also weigh the level of risk involved in your choices.

Opportunity cost DeVuyst recommends factoring in the custom rates of the area: baling a 5-foot-by-6-foot hay round at 1,400 pounds would cost around $28 for custom cutting, raking and baling.