Enter the current PP&E, past PP&E, and the depreciation over the same time period into the calculator to determine the total capital expenditure.

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## Capital Expenditure Formula

The following formula is used to calculate a total capital expenditure.

CapEx = PPE_c - PPE_p + D

- Where CapEx is the capital expenditure
- PPE
_{c}is the current period property, plant, & equipment - PPE
_{p}is the previous property, plant, & equipment - D is the total depreciation

To calculate capital expenditure, subtract the previous cost of property, plant, and equipment by the cost in the current period, then add the total depreciation.

## Capital Expenditure Definition

Capital expenditure is a measure of the total capital spent by a company to produce a good or service.

## Capital Expenditure Example

How to calculate capital expenditure?

**First, determine the PPE of the current period.**Determine the total value of the property, plant, & equipment of the current period.

**Next, determine the PPE of the previous period.**Determine the total value of the PPE of the previous period being analyzed.

**Next, determine the total depreciation.**Calculate the total depreciation of the PPE over the time period.

**Finally, calculate the capital expenditure.**Calculate the capital expenditure using the formula above and the values for PPE and depreciation.

## FAQ

**What is CapEx?**

Capex is short for capital expenditure and is a measure of the total capital spent on major physical goods or services that a company will use for a long period of time.