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Money

Capex

Capital expenditure: money spent on things that last for years, such as servers, buildings or a major software build. Instead of hitting profit all at once, the cost is spread over its useful life through depreciation or amortisation.

You'll hear it as

Buying our own servers would be capex, so it needs board sign-off.

Why it matters to you.

Finance treats capex and opex differently, which is why the same purchase can be easy or impossible depending on how it's framed.

Also called Capital expenditure.

Related terms.

Videos.

No video mentions Capex by name yet. These are on the same topic, Business & startups.

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