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Finance

CapEx / OpEx

Capital Expenditure / Operating Expenditure

CapEx is money spent on things you keep for years, like machines or laptops. OpEx is the day-to-day running cost, like salaries and rent.

Example

Buying a ₹2L server is CapEx; paying ₹8,000 a month for cloud hosting is OpEx.

Related terms

Balance Sheet
A snapshot of what the business owns and owes on a single date. What you own minus what you owe is what the business is worth on paper.
Depreciation
Spreading the cost of something expensive across the years you use it, instead of counting it all in the month you bought it.
Fixed vs Variable Cost
Fixed costs stay the same no matter how much you sell, like rent. Variable costs rise with each sale, like packaging and delivery.

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