Capital Expenditure (CapEx) Glossary Definition

Capital Expenditure (CapEx) is spending on long-term assets such as equipment, facilities, or systems that provide value over multiple accounting periods.

CapEx decisions often require approval, budgeting, depreciation planning, and return-on-investment analysis.

Project managers, sponsors, and project-controls staff use this concept in budget reviews, performance reporting, forecasting, and variance conversations.

Related concepts include Budget, Cost Baseline, Planned Value, Earned Value, Actual Cost and Cost Variance.