# Net investment

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In [economics](/source/Economics), **net investment** is spending which increases the availability of fixed [capital goods](/source/Capital_goods) or [means of production](/source/Means_of_production) and goods [inventories](/source/Inventories). It is the total spending on newly produced physical [capital](/source/Capital_(economics)) ([fixed investment](/source/Fixed_investment)) and on inventories ([inventory investment](/source/Inventory_investment))—that is, [gross investment](/source/Gross_investment)—minus replacement investment, which simply replaces [depreciated](/source/Depreciation) capital goods. It is productive [capital formation](/source/Capital_formation) plus net additions to the stock of [housing](/source/Housing) and the stock of [inventories](/source/Inventories). This figure provides a sense of the real expenditure on durable goods. [1]

## References

1. ["Net Investment"](https://corporatefinanceinstitute.com/resources/accounting/net-investment/). *Corporate Finance Institute*. Retrieved 2024-11-13.

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