Capital Expenditure (CAPEX) and Expense (OPEX) are two key terms in the business world that you need to be aware of. CAPEX refers to money spent on buying or improving assets for your company such as equipment or property. This can usually be seen as an investment, as it increases the value of the business long-term.
OPEX, on the other hand, refers to spending that is necessary to maintain your operations – expenses like salaries, utilities and general operational costs. These are all necessary costs but not seen as investments, and so they tend to be recurring.
Put simply: CAPEX is investing in growth, while OPEX is spending to sustain it.