How do you calculate capital expenditure (CAPEX)?

To calculate capital expenditure (Capex), subtract the current period PP&E from the prior period PP&E and then add depreciation. The reason that depreciation is added back is attributable to the fact that depreciation is a non-cash item.

How do I calculate CAPEX?

If you need to manually calculate capex, you can do so in four steps: Find your depreciation expense on your income statement. Once located, enter the balance into a spreadsheet. Locate your year-end PP&E balance. This can be obtained from your year-end balance sheet. This should be entered on the spreadsheet below your depreciation total.

What does adding depreciation to the CAPEX formula do?

Adding depreciation to the CapEx formula adjusts for the loss in value of existing assets, providing a more accurate measure of new capital expenditures. This CapEx calculator streamlines the process of calculating capital expenditures, aiding financial analysts, accountants, and business owners in making informed investment decisions.