What is opex?

[shirley]

I’m learning business finance basics. What is OPEX, and how is it different from capital expenses?

 

[robert]

OPEX or operating expenses refer to the costs that a company needs to incur in carrying out its day-to-day activities. OPEX include such expenses as payroll, office rental payments, utilities, marketing, and maintenance costs.

 

[Kevin]

OPEX, or operating expenses, are the ongoing costs a business incurs to run its daily operations, such as rent, salaries, utilities, marketing, and maintenance. These expenses are fully deducted in the period they occur and are different from capital expenditures (CAPEX), which are long-term investments in assets.

 

[Rick_Grimes]

OPEX (Operating Expenditure) means the day-to-day costs of running a business, like rent, salaries, utilities, and maintenance, basically the expenses you need to keep things running regularly, unlike CAPEX, which is spent on long-term assets; I usually think of OPEX as the “keep the lights on” cost of a business.