noun

opex

/ˈɒpɛks/ · say it: OH·peks

the ongoing costs of running a business; operating expenditure

In more detail

1. (noun) operating expenses; the costs involved in running a business or organization on a day-to-day basis, such as salaries, utilities, and maintenance

2. (noun) capital expenditure (in some contexts), money spent on equipment or infrastructure that will be used long-term

Examples

1. The company needs to reduce its opex to improve profitability.
2. The firm allocated a large budget for opex on new machinery.

How to use opex

Opex is a standard business and financial abbreviation used in corporate, accounting, and investment contexts to refer to the ongoing expenses required to keep a business functioning. It contrasts primarily with capex (capital expenditure). The second meaning (capital expenditure) is nonstandard and generally avoided in contemporary usage, as it creates confusion with the established capex/opex distinction.

Common phrases

reduce opex
opex budget
opex costs
opex reduction
opex management
minimize opex

Synonyms

operating expenses · operating costs · overhead · running costs

Opposites

capex · capital expenditure

A common mistake

Learners often confuse opex with capex; opex covers recurring day-to-day costs (salaries, utilities, rent), while capex refers to one-time investments in long-term assets (machinery, buildings, vehicles).

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