ACCOUNTING GLOSSARY
OpEx
Operating Expenditure
Recurring costs required to operate a business or property.
What does OpEx mean?
Recurring costs required to operate a business or property. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
OpEx in context
Payroll, utilities and routine maintenance are common operating expenses.
Why it matters in financing
OpEx can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.