Net Capital Spending Calculator

Calculate Net Capital Spending (NCS)





Formula

The formula to calculate the net capital spending is:

\[ NCS = EFA - BFA + D \]

Where:

What is Net Capital Spending?

Net capital spending is defined as the fixed asset values minus the depreciation. It represents the amount spent on fixed assets after accounting for depreciation. This metric is important for understanding a company's investment in its fixed assets over a period.

Example Calculation

Let's assume the following values:

Using the formula to calculate the net capital spending:

\[ NCS = 50,000 - 30,000 + 5,000 = 25,000 \]

The net capital spending is $25,000.