Thursday 14 November 2019

CapEx vs OpEx


Capital Expenditure (CapEx):

  • Spend on physical infrastructure up front

  • Deduct the expense from your tax bill over time (High upfront cost, value of investment reduces over time.)


Operational Expenditure (OpEx):

  • Spend on services or products as needed

  • Deduct the expense from your tax bill in the same year (No upfront cost, pay-as-you use.)