Business & Sales

What Are Operating Expenses (OpEx)?

Operating expenses (OpEx) are the ongoing costs of running a business that are not part of the cost of goods sold, such as rent, salaries of non-production staff, marketing, software, utilities, and insurance. Gross profit minus operating expenses equals operating income.

OpEx vs. CapEx

Capital expenditures (CapEx) are purchases of long-term assets, such as equipment or buildings, whose cost is spread over several years through depreciation.

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🔗 Related Terms

Cost of Goods Sold (COGS) Business Overhead Net Profit Margin Fixed Costs

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.