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- Skills Learned
- Describe the differences between Capital Expenditure (CapEx) and Operational Expenditure (OpEx)
- Study Guide
CapEx vs OpEx
Differences between Capital Expenditure and Operational Expenditure
| Capital Expenditure | Operational Expenditure | |
|---|---|---|
| Up front cost | Significant | None |
| Ongoing cost | Low | Based on usage |
| Tax Deduction | Over time | Same year |
| Early Termination | No | Anytime |
| Maintenance | Significant | Low |
| Value over time | Lowers | No change |