Startup Cost Calculator
Add up everything it takes to open your doors. Enter your one-time launch costs and your recurring monthly costs to see the total capital you need — including a cash runway reserve to keep you going before revenue catches up.
How the startup cost calculator works
Launching a business takes two very different kinds of money: the money you spend once to open, and the money you spend every month to stay open. This calculator separates the two so you can see the real number you need in the bank before day one.
where one-time costs are summed from your launch expenses, monthly costs are your recurring burn rate, and runway is the number of months you want to fund before relying on revenue.
First the tool adds every one-time cost — equipment, licenses and permits, initial inventory, your website and branding, legal and incorporation fees, security deposits, and anything else you only pay once. That gives your one-time costs total.
Next it adds your recurring monthly costs — rent, payroll, utilities, software, insurance, marketing, and other monthly items. That sum is your monthly burn rate: what it costs to operate for a single month.
Because most new businesses do not turn a profit immediately, you need a cash cushion. The calculator multiplies your burn rate by the number of months of runway you choose to get a runway reserve. Adding the one-time total and the runway reserve together gives the total startup capital you should have available.
What affects your startup cost
- Location & space — rent and security deposits often dominate one-time and monthly costs alike.
- Headcount — payroll is usually the largest recurring cost and grows your burn rate fast.
- Inventory model — product businesses tie up far more cash up front than service businesses.
- Runway length — every extra month of reserve multiplies your burn rate, so choose realistically.
Tips before you launch
- Plan for at least three to six months of runway; slow early revenue is normal.
- Build a monthly budget so your burn rate stays predictable.
- Check your working capital to be sure short-term bills are covered.
- If you plan to borrow the gap, model the payment with the business loan calculator first.
Frequently asked questions
What is included in startup costs?
Startup costs fall into two groups. One-time costs are paid once to open, such as equipment, licenses and permits, initial inventory, a website, legal and incorporation fees, and security deposits. Monthly costs are ongoing, such as rent, payroll, utilities, software, insurance, and marketing.
How much cash runway should I plan for?
Most new businesses plan for at least three to six months of monthly costs as a cash reserve, because revenue is often slow at the start. This calculator multiplies your monthly burn rate by the number of months of runway you choose and adds it to your one-time costs.
What is a burn rate?
Burn rate is the total amount of cash your business spends each month to operate before it is profitable. In this tool it equals the sum of all your recurring monthly costs, such as rent, payroll, utilities, and software.
How much money do I need to start a business?
It depends entirely on your model. Add every one-time cost to open, then add several months of monthly operating costs as a runway reserve. The total is a realistic estimate of the capital you should have available before you launch.
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This calculator is for educational and informational purposes only and does not constitute financial, legal, or accounting advice. Estimates are based solely on the values you enter. Confirm your figures with a qualified advisor before making decisions.