How to Create a Capital Expenditure Template in Google Sheets

Big purchases like new equipment, upgraded tools, or long-term investments can seriously impact a business budget. These are known as capital expenditures, and keeping track of them is key to making smart financial decisions.

With Google Sheets, it’s easy to build a simple and reliable tracker. No need for complicated software or accounting tools, just a few steps and you’ll have a clear view of where your money is going and how it’s being used.

What Is Capital Expenditure

Capital expenditure refers to the money a business spends on major physical goods or services that will be used for a long time. These aren’t your day-to-day expenses. Instead, they’re long-term investments, like buying a new laptop, renovating a store, or purchasing delivery vehicles.

CapEx items usually last more than a year and are recorded as assets on your balance sheet. Unlike regular expenses, you don’t just write them off in one go; instead, you spread the cost over a few years using depreciation. That’s why it helps to track everything clearly.

Step 1: Open Google Sheets

Head to Google Sheets, and open a blank spreadsheet. Name it something simple like “CapEx Tracker 2025.”

Step 2: Set Up Your Header Row

In the top row, type out your column labels. Here’s a solid starting point:

• Date
• Item Name
• Category (Equipment, Software, Vehicle)
• Description
• Vendor/Supplier
• Quantity
• Unit Cost
• Total Cost
• Payment Method
• Expected Lifespan (Years)
• Annual Depreciation

You can change these labels later to suit your needs.

Step 3: Use Formulas to Make It Work for You

Let’s make it a bit smarter.

In column H (Total Cost), use this formula:

=F2*G2

This multiplies quantity by unit cost. Drag it down for the rest of the rows.

In column K (Annual Depreciation), add:

This divides the total cost by the lifespan in years. It only works if you’ve entered a lifespan.

Step 4: Add Dropdown Lists for Easy Selection

Click on any cell under “Category”, go to Insert > Dropdown, then set up a drop-down with options like:

• Equipment
• Software
• Furniture
• Vehicle
• Renovation

This keeps your data consistent and clean.

Step 5: Freeze the Header Row

Click on Row 1, then go to View > Freeze > 1 row. This keeps your headers visible as you scroll.

Step 6: Share or Collaborate

Click the Share button in the top-right if you need to work with a team. Google Sheets lets you set permissions and track changes easily.

Get the Free Capital Expenditure Template

Get a copy of the free Capital Expenditure template. I’ve populated some cells as examples, but you can customize them as needed.

Final Thoughts

You don’t need expensive accounting software to keep your capital expenses in check. A simple, well-set-up Google Sheet can do the job beautifully. What matters most is that you keep it updated and tailor it to your workflow. Don’t overthink it, just start small and adjust as you go.

Frequently Asked Questions

Can I use formulas to calculate depreciation in Google Sheets?

Yes! A simple formula like =Total Cost / Lifespan gives you straight-line depreciation. For more advanced depreciation methods, like declining balance, you can use formulas like =DB(cost, salvage, life, period).

Is it possible to lock certain cells or rows?

Yes. You can protect ranges by going to Data > Protect sheets and ranges. This is great if you’re sharing the file and want to avoid accidental edits.

Can I create charts to visualize my CapEx data?

Absolutely! Use Insert > Chart to create bar charts or pie charts showing spending by category or vendor.