Startup Cost Calculator
What it costs to get a business to its first sale, and how much reserve it needs.
The cost of starting a business is the money spent before it earns anything, plus the money it needs to survive the first months of not earning. The second part is the one that catches people out.
Enter the one-off setup costs and the monthly running costs, with how long you expect to wait for revenue, and this calculator gives the total cash needed and what the reserve covers.
At a glance
- What you enter
- Registration, legal and accounting setup, Equipment and tools, Website, branding and design, Initial stock or materials, Deposits, licences and insurance, Other setup costs, Monthly running costs, Months before revenue starts, Extra months of buffer, Money you already have
- What you get
- Total cash needed, One-off setup cost, Reserve needed, Funding gap, Months of cover from the reserve, Monthly revenue to cover the costs
- Formula shown
- Yes - every step, right below your results.
- Cost and privacy
- Free, no account needed, and nothing you type is stored.
See worked examples ↓ Read the FAQ ↓ Share this calculator ↓
Results are estimates for general information only - always verify with a professional or official source before acting on them.
How to use the Startup Cost Calculator
- 1 Enter Registration, legal and accounting setup
- 2 Enter Equipment and tools
- 3 Enter Website, branding and design
- 4 Enter Initial stock or materials
- 5 Enter Deposits, licences and insurance
- 6 Enter Other setup costs - Training, launch marketing, signage, a vehicle, certification.
- 7 Enter Monthly running costs - Rent, software, insurance, your own living costs if the business pays them.
- 8 Enter Months before revenue starts (months)
- 9 Enter Extra months of buffer (months) - Revenue usually starts later and lower than planned.
- 10 Enter Money you already have
- 11 Press Calculate. You get Total cash needed, One-off setup cost, Reserve needed, Funding gap, Months of cover from the reserve, Monthly revenue to cover the costs, and every intermediate step stays visible under “How is this calculated?”
- 12 Change one number at a time to see what moves the result - that is usually the most useful thing a calculator can tell you.
Worked examples
Real numbers run through this calculator. Open any example to load it into the form above and change it.
A shop needing $17,000 of setup and eight months of cover
Registration, equipment, a website, stock and deposits, with five months before revenue and a three month buffer.
You enter
- Registration, legal and accounting setup
- $1,500.00
- Equipment and tools
- $6,000.00
- Website, branding and design
- $3,000.00
- Initial stock or materials
- $4,000.00
- Deposits, licences and insurance
- $2,000.00
- Other setup costs
- $500.00
- Monthly running costs
- $2,500.00
- Months before revenue starts
- 5 months
- Extra months of buffer
- 3 months
- Money you already have
- $20,000.00
You get
- Total cash needed
- $37,000.00
- One-off setup cost
- $17,000.00
- Reserve needed
- $20,000.00
- Funding gap
- $17,000.00
- Months of cover from the reserve
- 8.00 months
- Monthly revenue to cover the costs
- $2,500.00
The one-off setup is $17,000.00 and the reserve is $20,000.00, which is $2,500.00 a month across eight months. The total cash needed is $37,000.00, so against $20,000.00 available the funding gap is $17,000.00. Setup is 45.9% of the total, equipment is 35.3% of the setup and stock 23.5%, and the reserve covers 8.00 months of running costs.
A service business with $4,000 of setup and a year of cover
Low setup costs, higher monthly costs including the owner living costs, six months before revenue and a six month buffer.
You enter
- Registration, legal and accounting setup
- $800.00
- Equipment and tools
- $1,200.00
- Website, branding and design
- $600.00
- Initial stock or materials
- $0.00
- Deposits, licences and insurance
- $400.00
- Other setup costs
- $1,000.00
- Monthly running costs
- $3,200.00
- Months before revenue starts
- 6 months
- Extra months of buffer
- 6 months
- Money you already have
- $45,000.00
You get
- Total cash needed
- $42,400.00
- One-off setup cost
- $4,000.00
- Reserve needed
- $38,400.00
- Funding gap
- -$2,600.00
- Months of cover from the reserve
- 12.00 months
- Monthly revenue to cover the costs
- $3,200.00
The setup is $4,000.00, of which equipment is 30.0% and there is no stock at all, and the reserve is $38,400.00 for twelve months at $3,200.00. The total needed is $42,400.00 against $45,000.00 available, so the funding gap line reads minus $2,600.00 and the plan is funded with $2,600.00 to spare. Setup is only 9.4% of the total, which is why the long wait for revenue is the risk here rather than the startup spending.
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Frequently asked questions
Why can the reserve cost more than the setup?
Because setup is spent once and the reserve is spent every month. The reserve is the monthly running costs multiplied by the months before revenue starts plus the buffer months you choose. A business with $2,500 of monthly costs, five months before revenue and a three month buffer needs $20,000 of reserve, more than the $17,000 of setup in the same example.
This is the part most plans underestimate. The monthly costs do not stop while you wait for customers, and they include your own living costs if the business has to pay them.
How many buffer months should I enter?
Enough to cover revenue arriving later and lower than planned, which is the usual outcome for a new business. Three months is a common starting point; a long sales cycle, a seasonal trade or a first venture justifies more. The buffer is added directly to the months before revenue, so every extra month lengthens the reserve by exactly one month of costs.
Entering zero is a useful exercise rather than a plan, because it shows what the business would need if everything went to schedule. The difference between that figure and the funded one is the price of being wrong.
What does a negative funding gap mean?
It means the money you already have covers the setup and the reserve, with the difference left over. In the second example the total needed is $42,400 and the money available is $45,000, so the plan is funded with $2,600 to spare and the gap line reads minus $2,600.
A positive gap is the amount still to find, from savings, a loan, a grant or a partner. Finding it before you start is far easier than finding it in month four, when the business has no revenue and no time.
Which parts of the setup cost come back?
Stock comes back as it sells, though possibly slowly and at a discount, and equipment keeps some of its value. The stock and equipment shares exist to make that visible: in the first example equipment is 35.3% of the setup and stock is 23.5%. Registration fees, deposits and website work do not come back at all.
The distinction matters when comparing a business that needs a lot of stock with one that needs a lot of equipment. The first ties up cash that returns with sales; the second spends cash on things that can be sold later, usually for less than they cost.