Vocabulary
B1–B2
5 min read
Updated 13 June 2026
Quick answer: Price is the amount of money asked for a specific item: What’s the price of this jacket? Cost is the total amount spent, or a broader sacrifice: The cost of living has risen. Cost can also be used as a verb: It costs £50.
Comparison Table
| Word | Part of speech | Meaning | Example |
|---|
| price | noun (mainly) | the monetary amount asked for a specific item | What’s the price of this jacket? |
| cost | noun or verb | total expenditure, broader expenses, or figurative sacrifice | The cost of living has risen. |
Using Price (Noun)
Price refers to the specific monetary amount displayed or asked for a particular product or service. It is what you see on a price tag or a menu.
What’s the price of this jacket?
House prices have risen dramatically this year.
The ticket price includes breakfast.
Common collocations with price: price tag, price list, asking price, retail price, half price, full price, competitive price, price cut, price rise.
Using Cost (Noun and Verb)
Cost is more flexible. As a noun, it refers to the total money spent, the running expenses of something, or a figurative sacrifice. As a verb, it describes what something charges.
The cost of living has risen significantly.
What is the total cost of the renovation?
This dress costs £120. (verb)
Cost can also be used figuratively: "The war was won, but at a terrible cost." Here it refers to lives lost, not money.
Cost as a Verb
Price is almost always a noun. Cost, however, can be a verb:
How much does it cost?
The trip cost us £2,000.
That decision cost him his career.
Memory Trick
Memory Tip
Think of Price = Price tag (a specific sticker on one item). Think of Cost = Complete total (the full bill, including everything). If you can point to a price tag, use price. If you’re talking about totals or consequences, use cost.
Common Mistakes
Mistake 1 — Using price as a verb
✗ This jacket prices £80.
✓ This jacket costs £80.
Mistake 2 — Using cost for figurative meanings with price
✗ We won, but at a great price of human life. (unnatural)
✓ We won, but at a great cost to human life.
Mistake 3 — Confusing cost of living with price of living
✗ The price of living has risen.
✓ The cost of living has risen.
(Cost of living is a fixed collocation.)
Frequently Asked Questions
What is the difference between price and cost?
Price refers to the specific amount of money asked for a particular item or service: "What's the price of this jacket?" Cost refers to the total expenditure involved, or the broader sacrifice (time, effort, consequences): "The cost of living has risen." Cost can also be figurative: "The cost of war is human life."
When should I use price?
Use price when referring to the amount of money attached to a specific product or service at point of sale. Examples: "The price of petrol has gone up." "What's the price of this jacket?" "The ticket price includes dinner." Price usually refers to a single, named item.
When should I use cost?
Use cost for the total amount spent, broader expenses, or figurative sacrifices. Examples: "The cost of living has risen sharply." "What's the total cost of the project?" "The cost of the accident was enormous." Cost also works as a verb: "This jacket costs £50."
Can cost be a verb?
Yes! Cost is both a noun and a verb. As a verb: "This laptop costs £800." "The trip cost us a fortune." "It will cost you time and money." Price is almost always a noun (or used attributively: "price tag", "price list"), rarely a verb in everyday English.
What is the difference between 'at what price' and 'at what cost'?
"At what price?" asks about the monetary amount of a specific item. "At what cost?" is more figurative and asks about the broader consequences or sacrifices: "We won the war, but at what cost?" This phrase implies human, moral, or social consequences beyond money.
How do I use price in a sentence?
Examples: "What's the price of this jacket?" "The prices in that restaurant are very high." "We negotiated the price down to £200." "The price tag said £45." "House prices have doubled in ten years." Price usually refers to what is displayed or advertised.
How do I use cost in a sentence?
Examples: "The cost of living has risen sharply." "How much does it cost?" "The total cost of the renovation was £20,000." "Success came at a great personal cost." "Travelling first class costs more." Cost covers expenses, broader totals, and figurative sacrifices.
What are common collocations with price?
Common collocations: asking price, market price, retail price, list price, price tag, price cut, price rise, half price, full price, at a price. Example phrases: "buy at half price", "price war", "price range", "reasonable price", "competitive price".
What are common collocations with cost?
Common collocations: cost of living, at all costs, at any cost, cost-effective, hidden cost, running cost, overhead cost, opportunity cost, cover costs, cut costs, at a cost. Example: "We must cut costs to stay profitable." "The opportunity cost of this decision is significant."
Do price and cost mean the same thing in casual English?
In casual everyday speech, people often use price and cost interchangeably: "How much does it cost?" and "What's the price?" mean roughly the same thing. However, in business, economics, and formal writing, the distinction matters: price is what is charged; cost is what is spent (which may include additional expenses beyond the listed price).