When do I use "Price" and when do I use "Cost"?

"Price" = what the seller asks. "Cost" = what you actually pay or sacrifice.

What is the most common mistake with "Price" and "Cost"?

"Price" is what the seller puts on the tag; "cost" is what you actually pay. A shirt may have a "price" of $100 but the total "cost" (with taxes and shipping) may be $115.

How do I remember the difference between "Price" and "Cost"?

"Price" = the tag (can be negotiated or ignored). "Cost" = what actually leaves your wallet (includes taxes, shipping, time, effort). The "price" of the gym is the monthly fee; the "cost" is what you really spend when you stop going.

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Which one to use?Intermediatenounnoun

PricevsCost

"Price" is the value assigned to something for sale; "cost" is what you actually pay or sacrifice to get it.

Side-by-side comparison

Price

noun

"Price" is the number on the tag or the amount the seller asks. It is what you see listed in the shop or advertisement. The seller sets it.

The price of this phone is $800.
Prices at this restaurant are very reasonable.
They reduced the price by 20% for the sale.

Cost

noun

"Cost" is what you actually spend or sacrifice to get something. It can be money, time, effort, or any loss. "What's the cost?" = what do you give up to get it?

The total cost of the project was higher than expected.
The cost of living in this city is very high.
Success sometimes comes at a high personal cost.

Common mistake

•"Price" is what the seller puts on the tag; "cost" is what you actually pay.
•A shirt may have a "price" of $100 but the total "cost" (with taxes and shipping) may be $115.

Trick to remember it

•"Price" = the tag (can be negotiated or ignored).
•"Cost" = what actually leaves your wallet (includes taxes, shipping, time, effort).
•The "price" of the gym is the monthly fee; the "cost" is what you really spend when you stop going.

Quick rule

•"Price" = what the seller asks.
•"Cost" = what you actually pay or sacrifice.

Did you know?

"At any cost" and "at all costs" are fixed expressions using COST, never PRICE. They mean "regardless of the sacrifice", life, time, friendship, whatever it takes. The conceptual difference between PRICE and COST becomes philosophical: PRICE is an arbitrary number someone assigns; COST is the real impact on you, which can be economic, emotional, or physical. In colloquial English there is a saying: "Everything has a price, but not everything has the same cost", price is set by the market, cost is paid by the person.