The term "upfront costs" refers to expenses that are incurred at the beginning of a project or investment. These may include fees for professional services, such as legal and accounting fees, as well as any other initial outlays required to initiate the project or investment. Upfront costs can also refer to the cost of purchasing equipment or materials needed for a particular endeavor. In general, upfront costs are expenses that must be paid before a project or investment can begin generating returns.