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Unfunded Capex Calculator

Unfunded Capex Formula:

\[ \text{Unfunded Capex} = \text{Planned Capex} - \text{Available Funds} \]

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1. What is Unfunded Capex?

Unfunded Capex represents the gap between planned capital expenditures and the funds actually available to cover those expenditures. It's a critical metric for financial planning and investment decisions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

\[ \text{Unfunded Capex} = \text{Planned Capex} - \text{Available Funds} \]

Where:

Explanation: A positive result indicates a funding shortfall, while a negative result means you have surplus funds.

3. Importance of Unfunded Capex Calculation

Details: Calculating unfunded capex helps organizations identify funding gaps, prioritize investments, and make informed decisions about financing options like debt or equity raises.

4. Using the Calculator

Tips: Enter both values in the same currency. The calculator accepts any currency amount (dollars, euros, etc.) as long as both inputs use the same currency.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a "good" unfunded capex?
A: Ideally, unfunded capex should be zero or negative (surplus). Positive values indicate a funding gap that needs addressing.

Q2: How often should this calculation be done?
A: For active projects, monthly tracking is recommended. For annual budgets, review quarterly.

Q3: What if my unfunded capex is positive?
A: Consider options like reducing planned capex, increasing available funds through financing, or prioritizing projects.

Q4: Does this include operating expenses?
A: No, this calculation is specifically for capital expenditures (capex), not operating expenses (opex).

Q5: Can this be used for personal finance?
A: Yes, the same principle applies to personal investments like home renovations or large purchases.

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