Confusable words

cost vs price: what's the difference?

cost
noun / verb
vs
price
noun
? ?

Cost and price both relate to money, but one is what the seller charges and the other can be broader than money.

Cost

noun / verb

Cost can mean the amount you pay, or the resources needed to make or do something.

  • The cost of living has gone up this year.
  • It cost me two hours to finish the report.

Price

noun

Price specifically means the amount of money a seller asks for a product or service.

  • The price of the jacket was too high for me.
  • They raised the price of the tickets.

Side by side

cost price
Can be non-money? Yes, cost can mean time or effort too No, price is always about money
Who sets it Often the market or the effort involved Set directly by the seller
Simple test "the cost of the project" could include time and effort "the price of the ticket" is a specific number

Quick rule

Price is always a specific amount of money set by a seller. Cost is broader, and can include money, time, or effort.

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