Implicit Cost

Definition of "Implicit cost"

Also called opportunity cost. The return foregone from an alternative employment of time or facilities. For example, if a building is rented out to a charity for a bingo night for $1,000 but it could have been rented out to a company for $10,000, the return foregone is $9,000.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ