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9 Examples of Capital Budget

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A capital budget is a budget for investments in a business. Capital expenditures are cash payments that are made today that payback for many years. As such, they often can't be completely expensed in the year they are paid. This differs from operating expenses such as rent that are paid today and expensed today. The following are common examples of capital that might be included in a capital budget.


Computing equipment such as laptops.


In many cases, software development is considered a capital expense that produces an intangible capital asset.


Equipment such as robots or power generators.


Office buildings, factories, data centers and other facilities.


Infrastructure such as solar panels.

Land Improvements

Fences, gardens and other land improvements.

Research & Development

Research and development produces things such as new product designs that are an investment in the future. However, the benefits of R&D tend to be uncertain. For example, you might develop a product that you never end up launching. As such, R&D is typically considered an operating expense. If you purchase an in-process research & development project from another firm, this can be capitalized.


Aircraft, ships and commercial vehicles.

Professional Tools

Expensive professional tools that have a long lifespan such as a musical instrument or kitchen appliance for a restaurant.
Overview: Capital Budget
A capital budget is a budget for investments in a business.
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