# What is my CapEx?

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

- Page: https://www.acalculator.org/finance/capex-calculator
- JSON spec: https://www.acalculator.org/finance/capex-calculator.json
- Version: 6d64aafce23f

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| ppe0 | Net PP&E at the start | Property, plant and equipment less accumulated depreciation, on last year’s balance sheet. |
| ppe1 | Net PP&E at the end | Property, plant and equipment less accumulated depreciation, on this year’s balance sheet. |
| dep | Depreciation | Depreciation expense for the year, from the income statement. |
| sold | Book value of PP&E sold or written off | Cost less accumulated depreciation of assets that left the balance sheet during the year. Optional. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| capex | Capital expenditures (CapEx) | Ending net PP&E − beginning net PP&E + depreciation + book value of assets sold or written off. |
| change | Change in net PP&E | Ending net PP&E − beginning net PP&E. |
| net | Net CapEx | CapEx − depreciation: the spending beyond what wore out this year. |

## 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.

## Worked examples

1. ppe0 = $40,000.00, ppe1 = $50,000.00, dep = $3,600.00 gives capex = $13,600.00, change = $10,000.00, net = $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. ppe0 = $98,900.00, ppe1 = $144,500.00, dep = $14,400.00 gives capex = $60,000.00, change = $45,600.00, net = $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. ppe0 = $500,000.00, ppe1 = $540,000.00, dep = $70,000.00, sold = $15,000.00 gives capex = $125,000.00, change = $40,000.00, net = $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. ppe0 = $1,250,000.50, ppe1 = $1,190,000.25, dep = $98,000.75 gives capex = $38,000.50, change = -$60,000.25, net = -$60,000.25.

## FAQ

### 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.

## 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)