Identify the alternatives
Determine the expected benefit of each alternative
Determine the cost of each alternative
Subtract the benefit of the chosen option from the benefit of the next best alternative
Use the formula: Opportunity Cost = Benefit of best forgone alternative – Benefit of chosen option
Include both explicit and implicit costs if relevant
Compare the value of time, money, and resources used
Choose the option with the highest net benefit
The difference between that option and the next best option is the opportunity cost