The major differences between CAPEX and OPEX are as follows −
Benefits organization more than one year.
Also called as capital expenditure, capital expense.
Long term tenure.
They are depreciated or amortized over the time.
Listed as property or equipment.
Earns profits slowly/gradually.
Lending institutions act as source of finance.
CAPEX comes in balance sheet.
Examples − buying of fixed assets, expansion of buildings, purchasing vehicles etc.
Ongoing expenses to run day to day operations.
Also called as operating expenses, operating expenditure, revenue expenditure.
Pay as you go.
Relatively shorter term tenure.
Fully deducted in the accounting period in which they were incurred.
Listed as operating cost.
Earned profits for shorter time.
Personal saving act as source of finance.
OPEX comes in income statement.
Examples − license fees, legal fees, insurance fees, salary and wages etc.