How To Calculate Capital Expenditures

A capital expenditure is a cost to a business to improve the physical aspects of a business. This can be an improvement in buildings or equipment.You can calculate the capital expenditures by writing down all costs related to physical improvement. You will then need to total these amounts for your total capital expenditure.

You calculate capital expenditures by first finding the change on total assets and the change in total liabilities between two given years. Then subtract the change on total liabilities from the change in total assets.