Enter the ending fixed assets, beginning fixed, and total depreciation into the calculator to determine the net capital spending.
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Net Capital Spending Formula
The following formula is used to calculate net capital spending.
NCS = EFA – BFA + D
- Where NCS is the net capital spending ($)
- EFA is the ending fixed assets ($)
- BFA is the beginning fixed assets ($)
- D is the total depreciation
Net Capital Spending Definition
Net capital spending is defined as the fixed asset values minus the depreciation.
Net Capital Spending Example
How to calculate net capital spending?
- First, determine the beginning fixed assets.
Sum the value of all fixed assets at the beginning period. For this example, we will say this is $10,000.00.
- Next, determine the ending fixed assets.
Determine the value of all assets at the end of the time period. For this example we find the value to be $15,000.00
- Next, determine the depreciation.
Find the depreciation of the assets over the same time. We will assume this is $1,000.00.
- Finally, calculate the net capital spend.
Using the formula above we find the net capital spending is $15,000.00-$10,000.00+$1,000.00 = $6,000.00
Net capital spending is the total amount of capital spent after depreciation.