acalculator

What is my CapEx?

Enter net property, plant and equipment (PP&E) from last year's and this year's balance sheets and the year's depreciation. Add the book value of any assets sold. The calculator works out what was spent on new fixed assets.

Your numbers

Capital expenditures (CapEx)
$13,600.00

Net PP&E went from $40,000.00 to $50,000.00; with $3,600.00 of depreciation, capital expenditures were $13,600.00.

Change in net PP&E
$10,000.00
Net CapEx
$10,000.00

Capital expenditures (CapEx): $13,600.00. Net PP&E went from $40,000.00 to $50,000.00; with $3,600.00 of depreciation, capital expenditures were $13,600.00.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Computes capital expenditures (CapEx) from net property, plant and equipment on two balance sheets plus depreciation, with net CapEx.

Example with the default inputs (Net PP&E at the start $40,000.00, Net PP&E at the end $50,000.00, Depreciation $3,600.00, Book value of PP&E sold or written off $0.00): Net PP&E went from $40,000.00 to $50,000.00; with $3,600.00 of depreciation, capital expenditures were $13,600.00.

Method: CapEx = ending net PP&E − beginning net PP&E + depreciation + book value of PP&E sold or written off. Net CapEx = CapEx − depreciation.

  • Net PP&E is property, plant and equipment less accumulated depreciation, from balance sheets a year apart.
  • Depreciation is the expense for the same year. Other changes, such as impairments, go in the sold or written off box.
  • Arithmetic is exact on the typed decimals; money shows to the cent, halves up.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Net PP&E at the start $40,000.00, Net PP&E at the end $50,000.00, Depreciation $3,600.00 gives Capital expenditures (CapEx) $13,600.00, Change in net PP&E $10,000.00, Net CapEx $10,000.00.Source: OpenStax, Principles of Finance, 5.5 The Statement of Cash Flows (Clear Lake Sporting Goods: $50,000 current year balance less $40,000 prior year balance and $3,600 of depreciation = $13,600 of new assets purchased). https://openstax.org/books/principles-finance/pages/5-5-the-statement-of-cash-flows: 50,000 − 40,000 + 3,600 = 13,600; Aswath Damodaran, NYU Stern, Variables used in Data Set (net capital expenditures = capital expenditures − depreciation). https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm: 13,600 − 3,600 = 10,000
  2. Net PP&E at the start $98,900.00, Net PP&E at the end $144,500.00, Depreciation $14,400.00 gives Capital expenditures (CapEx) $60,000.00, Change in net PP&E $45,600.00, Net CapEx $45,600.00.Source: OpenStax, Principles of Financial Accounting, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method (Propensity Company: plant assets $170,000 and $230,000, accumulated depreciation $71,100 and $85,500, depreciation $14,400, cost of new plant assets $60,000). https://openstax.org/books/principles-financial-accounting/pages/16-3-prepare-the-statement-of-cash-flows-using-the-indirect-method: (230,000 − 85,500) − (170,000 − 71,100) + 14,400 = 144,500 − 98,900 + 14,400 = 60,000
  3. Net PP&E at the start $500,000.00, Net PP&E at the end $540,000.00, Depreciation $70,000.00, Book value of PP&E sold or written off $15,000.00 gives Capital expenditures (CapEx) $125,000.00, Change in net PP&E $40,000.00, Net CapEx $55,000.00.Source: OpenStax, Principles of Finance, 5.5 The Statement of Cash Flows (Clear Lake Sporting Goods: $50,000 current year balance less $40,000 prior year balance and $3,600 of depreciation = $13,600 of new assets purchased). https://openstax.org/books/principles-finance/pages/5-5-the-statement-of-cash-flows (method)
  4. Net PP&E at the start $1,250,000.50, Net PP&E at the end $1,190,000.25, Depreciation $98,000.75 gives Capital expenditures (CapEx) $38,000.50, Change in net PP&E -$60,000.25, Net CapEx -$60,000.25.

How it works

  • Change in net PP&E = net PP&E at the end − net PP&E at the start
  • CapEx = change in net PP&E + depreciation + book value of PP&E sold or written off
  • Net CapEx = CapEx − depreciation

Net PP&E is property, plant and equipment at cost less accumulated depreciation. It goes up when assets are bought, and down through depreciation and when assets leave (sold, scrapped or written down). So the purchases are the change in net PP&E plus the depreciation and the book value of the assets that left.

Rules:

  • Every amount is $0 or more and at most $1 quadrillion. The book value of assets sold or written off is optional; an empty box counts as $0.
  • If the result is below $0, the figures cannot be right (net PP&E fell by more than the depreciation and the assets entered as sold), and there is no answer.
  • The arithmetic is exact on the decimals you type. Money shows to the cent, with halves rounded up (away from 0).

Assumptions

  • The two balance sheets are a year apart, and the depreciation is that year's expense on the same assets.
  • Impairments and other write-downs go in the sold or written off box, at the book value they removed.
  • Assets bought with a note or by a trade, not with cash, still count, because they entered the account.

Worked examples by hand

Clear Lake Sporting Goods. Plant assets $40,000 last year and $50,000 this year; depreciation $3,600. CapEx = 50,000 − 40,000 + 3,600 = $13,600. Net CapEx = 13,600 − 3,600 = $10,000.

Propensity Company. Net plant assets were 170,000 − 71,100 = $98,900 and 230,000 − 85,500 = $144,500; depreciation was $14,400. CapEx = 144,500 − 98,900 + 14,400 = $60,000, the cost of new plant assets on its statement of cash flows.

An asset sold during the year. Net PP&E $500,000 at the start and $540,000 at the end, $70,000 of depreciation, and a machine with a book value of $15,000 sold. CapEx = 540,000 − 500,000 + 70,000 + 15,000 = $125,000. Net CapEx = $55,000.

Net PP&E that fell. $1,250,000.50 at the start, $1,190,000.25 at the end, $98,000.75 of depreciation. CapEx = 1,190,000.25 − 1,250,000.50 + 98,000.75 = $38,000.50. Net CapEx is −$60,000.25: the business spent less than its assets wore out.

Other questions people ask

What is CapEx?

Capital expenditures (CapEx) are what a business spends on long-term assets such as buildings, machinery, vehicles and equipment. They go on the balance sheet and are depreciated over time, and the cash paid shows under investing activities on the statement of cash flows.

How do I calculate CapEx?

Subtract last year's net PP&E from this year's and add the year's depreciation. Clear Lake Sporting Goods had $40,000 of plant assets last year and $50,000 this year, with $3,600 of depreciation, so it bought 50,000 − 40,000 + 3,600 = $13,600 of new assets.

Why add depreciation back?

Depreciation lowers net PP&E without any cash being spent. If the account grew by $10,000 while $3,600 of depreciation came off it, new assets of $13,600 must have gone in.

What if the company sold assets during the year?

An asset sold or written off leaves the balance sheet at its book value (cost less accumulated depreciation). Add that book value too, or the formula undercounts what was bought. If net PP&E fell by more than depreciation, look for sales, impairments or write-downs.

What is net CapEx?

Net CapEx is CapEx minus depreciation: the spending beyond what was needed to replace what wore out. Clear Lake spent $13,600 with $3,600 of depreciation, so its net CapEx was $10,000. A business that is growing usually has net CapEx above $0.

Where do I find CapEx directly?

On the statement of cash flows, under investing activities, as purchases of property, plant and equipment. The balance sheet method here gives the same figure when net PP&E changed only through purchases, depreciation and the assets you entered as sold.