About the Startup Cost Calculator
Before you open the doors, you need to know two numbers: what it costs to get started, and how much cash you need to keep going until revenue can cover the bills. This startup cost calculator adds up one-time expenses — equipment, build-out and deposits, opening inventory, legal and licensing, website and software, launch marketing — and then adds the fixed monthly costs you must fund for your chosen runway.
A contingency percentage is applied on top, because almost every launch runs over budget. Enter the money you already have (savings, investors or a loan already approved) and the calculator shows the funding gap you still need to raise.
Use it for a business plan, a loan application or simply a reality check before you commit. The runway assumes no revenue during those months, which is deliberately conservative; shorten it if you expect sales from day one.
With the default inputs, the total capital needed is $101,200.00. Change any value above to recalculate instantly.
How to use the startup cost calculator
- 1List your one-time launch costs in each category (use quotes where you have them).
- 2Enter monthly rent, payroll and other fixed operating costs.
- 3Choose how many months of runway to fund and a contingency buffer.
- 4Enter the money you already have to see the remaining funding gap.
- 5Use the budget table in your business plan or loan application.
Formula and method
One-time costs are everything you pay once to open: equipment, build-out and deposits, opening inventory, legal and licensing, website and branding, and launch marketing. Monthly fixed costs (rent, payroll and other operating expenses) are multiplied by the number of months of runway you want to fund before revenue covers them.
A contingency percentage is applied to the combined total to cover overruns and forgotten items. The funding gap is the total capital needed minus money you already have available, and is never shown below zero.
- One-time costs
- Sum of launch expenses paid once
- Runway months
- Months of fixed costs to fund with no revenue
- Contingency %
- Buffer for overruns, typically 10–20%
Worked examples
Small retail shop, 6 months runway
One-time costs total $38,000. Six months of $9,000 fixed costs adds $54,000, and a 10% contingency adds $9,200, for $101,200. With $50,000 available, you still need about $51,200.
Lean service business, no buffer
Equipment ($15,000), legal ($3,000) and marketing ($5,000) come to $23,000. Six months of $5,000 in rent and operating costs is $30,000, so the business needs $53,000 in total.
Frequently asked questions
How much money do I need to start a business?+
It varies enormously: a home-based service business may need a few thousand dollars, while a restaurant or retail store can need several hundred thousand. List every one-time cost, add at least six months of fixed costs, then add a contingency buffer.
How many months of runway should I plan for?+
Six months of fixed costs is a common minimum; many advisers suggest 12 months or more for businesses with long sales cycles. The longer it will take to reach break-even, the more runway you need.
Should I include my own salary in startup costs?+
Yes, if you need to draw money to live on. Leaving it out understates the funding you need and is a common reason new owners run out of cash.
Are startup costs tax deductible in the US?+
The IRS lets businesses deduct up to $5,000 of startup costs and $5,000 of organizational costs in the first year (reduced when costs exceed $50,000), with the rest amortized over 180 months. Equipment is usually depreciated separately.
How much contingency should I add?+
A 10–20% buffer is typical. Use the higher end for build-outs, restaurants and anything involving contractors or permits, where overruns are common.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.