{
  "id": "capex",
  "version": "6d64aafce23f",
  "status": "published",
  "name": "CapEx Calculator",
  "question": "What is my CapEx?",
  "summary": "Computes capital expenditures (CapEx) from net property, plant and equipment on two balance sheets plus depreciation, with net CapEx.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/capex-calculator",
  "markdown": "https://www.acalculator.org/finance/capex-calculator.md",
  "kind": "function",
  "method": "CapEx = ending net PP&E − beginning net PP&E + depreciation + book value of PP&E sold or written off. Net CapEx = CapEx − depreciation.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "ppe0": {
        "title": "Net PP&E at the start",
        "description": "Property, plant and equipment less accumulated depreciation, on last year’s balance sheet.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "ppe1": {
        "title": "Net PP&E at the end",
        "description": "Property, plant and equipment less accumulated depreciation, on this year’s balance sheet.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "dep": {
        "title": "Depreciation",
        "description": "Depreciation expense for the year, from the income statement.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "sold": {
        "title": "Book value of PP&E sold or written off",
        "description": "Cost less accumulated depreciation of assets that left the balance sheet during the year. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "capex": {
      "label": "Capital expenditures (CapEx)",
      "description": "Ending net PP&E − beginning net PP&E + depreciation + book value of assets sold or written off.",
      "format": "money"
    },
    "change": {
      "label": "Change in net PP&E",
      "description": "Ending net PP&E − beginning net PP&E.",
      "format": "money"
    },
    "net": {
      "label": "Net CapEx",
      "description": "CapEx − depreciation: the spending beyond what wore out this year.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "ppe0": 40000,
      "ppe1": 50000,
      "dep": 3600,
      "sold": 0
    },
    "outputs": {
      "capex": 13600,
      "change": 10000,
      "net": 10000
    },
    "text": "Net PP&E went from $40,000.00 to $50,000.00; with $3,600.00 of depreciation, capital expenditures were $13,600.00."
  },
  "examples": [
    {
      "given": {
        "ppe0": 40000,
        "ppe1": 50000,
        "dep": 3600
      },
      "expect": {
        "capex": 13600,
        "change": 10000,
        "net": 10000
      },
      "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"
    },
    {
      "given": {
        "ppe0": 98900,
        "ppe1": 144500,
        "dep": 14400
      },
      "expect": {
        "capex": 60000,
        "change": 45600,
        "net": 45600
      },
      "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"
    },
    {
      "given": {
        "ppe0": 500000,
        "ppe1": 540000,
        "dep": 70000,
        "sold": 15000
      },
      "expect": {
        "capex": 125000,
        "change": 40000,
        "net": 55000
      },
      "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); hand calculation in content.mdx: 540,000 − 500,000 + 70,000 + 15,000 = 125,000"
    },
    {
      "given": {
        "ppe0": 1250000.5,
        "ppe1": 1190000.25,
        "dep": 98000.75
      },
      "expect": {
        "capex": 38000.5,
        "change": -60000.25,
        "net": -60000.25
      },
      "source": "hand calculation in content.mdx: 1,190,000.25 − 1,250,000.50 + 98,000.75 = 38,000.50"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 5.5 The Statement of Cash Flows: purchases of plant assets can be figured by comparing the current and prior plant assets accounts and including current year depreciation; Clear Lake Sporting Goods ($50,000 − $40,000 + $3,600 = $13,600). https://openstax.org/books/principles-finance/pages/5-5-the-statement-of-cash-flows (retrieved 2026-10-19)",
    "OpenStax, Principles of Financial Accounting, 16.3 Prepare the Statement of Cash Flows Using the Indirect Method: net book value is the asset’s original cost less accumulated depreciation, and a sold asset leaves at its net book value; Propensity Company (plant assets $170,000 and $230,000, accumulated depreciation $71,100 and $85,500, depreciation $14,400, 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 (retrieved 2026-10-19)",
    "Aswath Damodaran, NYU Stern School of Business, Variables used in Data Set: capital expenditures are the capital spending in the statement of cash flows; net capital expenditures are capital expenditures less depreciation. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm (retrieved 2026-10-19)",
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: investing activities include purchases of long-term assets such as property, plant and equipment. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-19)"
  ],
  "related": [
    "depreciation",
    "cash-flow",
    "book-value",
    "ebitda"
  ],
  "changelog": []
}