> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# OPEX: Operating Expenses

> Track operating expenses for your Shopify store. Measure fixed costs like salaries, rent, and software.

<Tip>
  OPEX (Operating Expenses) measures your fixed operating costs—salaries, rent, software, insurance, and other overhead expenses.
</Tip>

## Formula

<Info>
  **OPEX** = **SUM** ( User-defined operating expense entries )
</Info>

### Formula Components

| Metric           | Definition                                       |
| ---------------- | ------------------------------------------------ |
| **OPEX Entries** | User-configured operating costs in Cost Settings |

| Metadata        |                                                 |
| --------------- | ----------------------------------------------- |
| **Type**        | Currency                                        |
| **Data Source** | [Upstack Costs](/sources/catalog/upstack-costs) |
| **Aggregation** | Sum                                             |

***

## Example

Your Shopify store has **\$25,000** in monthly operating expenses.

| Component      | Amount       | Notes             |
| -------------- | ------------ | ----------------- |
| Salaries       | \$15,000     | Team payroll      |
| Office/Rent    | \$3,000      | Workspace costs   |
| Software       | \$2,000      | Tools and SaaS    |
| Insurance      | \$1,000      | Business coverage |
| Other          | \$4,000      | Miscellaneous     |
| **Total OPEX** | **\$25,000** | Monthly total     |

***

## How It Works

OPEX is configured in Cost Settings under "Fixed Costs." These are your operating overhead costs that don't scale directly with orders. OPEX is deducted at the CM4 level to calculate true operating profit.

***

## When to Use

| Scenario               | Action                                   |
| ---------------------- | ---------------------------------------- |
| Tracking overhead      | Monitor fixed cost structure             |
| CM4 calculation        | OPEX reduces CM3 to CM4                  |
| Break-even analysis    | Know OPEX to calculate break-even orders |
| Profitability planning | Manage OPEX to improve margins           |

***

## Related Metrics

| Metric                                                                   | Relationship                    |
| ------------------------------------------------------------------------ | ------------------------------- |
| [CM4](/reference/metrics/orders/contribution-margin/cm4)                 | Operating profit after OPEX     |
| [Agency Fees](/reference/metrics/orders/cogs/agency-fees)                | Agency costs also at CM4 level  |
| [CM3](/reference/metrics/orders/contribution-margin/contribution-margin) | Contribution margin before OPEX |

[See all COGS metrics →](/reference/metrics/orders/cogs)