Interactive calculator

Opportunity Cost Calculator

Opportunity cost is the value of the next-best alternative forgone. Enter the expected payoff of each option — studying versus working a shift, for example — and the calculator shows the opportunity cost of each choice and which option maximizes net benefit. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.

Prisoner's Dilemma Lab

Edit the payoffs, pick both strategies, find the Nash equilibrium

R — mutual cooperation

T — temptation

S — sucker

P — mutual defection

Payoff matrix — each cell shows (You, Opponent)
	Opp: Cooperate	Opp: Defect
You: Cooperate	(3, 3)	(0, 5)
You: Defect	(5, 0)	(1, 1) ★ NASH EQUILIBRIUM

Your move:

Opponent's move:

You earn 3, opponent earns 3

This is not a Nash equilibrium — at least one player would deviate.

How to read it

A cell is a Nash equilibrium when no player can improve by switching alone. With the classic payoffs (T=5, R=3, P=1, S=0), defecting always pays more no matter what the opponent does — so (Defect, Defect) is the unique equilibrium, even though both players would earn more at (Cooperate, Cooperate).

How to use it

Enter the expected payoff of option A.
Enter the expected payoff of option B.
Read the opportunity cost of each choice.

What you will learn

Define opportunity cost.
Apply it to everyday decisions.
Explain why sunk costs are excluded.