Startup Cost Calculator
How much money you need to start a business: one-time costs, months of running costs and a contingency.
Your startup
Filled in with example values. Replace them with your own.
Optional
A buffer on top of the total for costs you have not thought of. On by default; set your own figure.
Savings, loans or investment you already have.
Currency symbol
Results update as you type.
Result
Startup funding needed: $23,058.08
Startup funding needed
$23,058.08
- One-time costs3 items
- $6,550.50
- Monthly running costs
- $2,250.00
- Running costs to cover× 6 months
- $13,500.00
- Contingency15% of $20,050.50
- $3,007.58
What the money is for
- One-time costs
- $6,550.50
- Running costs
- $13,500.00
- Contingency
- $3,007.58
- Funding needed
- $23,058.08
How it’s calculated
One-time costs
$5,000.00 + $1,200.00 + $350.50 = $6,550.50
Running costs
$2,250.00 × 6 = $13,500.00
Subtotal
$6,550.50 + $13,500.00 = $20,050.50
Plus 15% contingency
$20,050.50 + $3,007.58 = $23,058.08
How the startup cost calculator works
List what it costs to open the business once, and what it costs each month to keep it running. Enter how many months of running costs you want to have covered before the business pays its own way. The calculator adds the one-time costs to the running costs for those months, adds an optional contingency and, if you enter the money you already have, shows how much is still to raise.
The formula
Running costs = Monthly costs × Months to cover
Subtotal = One-time costs + Running costs
Funding needed = Subtotal × (1 + Contingency % ÷ 100)
Still to raise = Funding needed − Money available
Worked example
One-time costs of 5,000 for equipment, 1,200 for a website and350.50 for registration; running costs of 1,800 rent and 450software a month, covered for 6 months, with a 15% contingency:
- One-time costs: 5,000 + 1,200 + 350.50 = 6,550.50
- Running costs: (1,800 + 450) × 6 = 13,500.00
- Subtotal: 6,550.50 + 13,500.00 = 20,050.50
- Contingency: 20,050.50 × 15% = 3,007.58
- Funding needed: 23,058.08
With 20,000 already available, 3,058.08 is still to raise.
Assumptions and limitations
- Amounts are worked in whole cents and rounded half up.
- Monthly costs are assumed to stay the same each month.
- Income from early sales is not taken off. To include it, use the Cash Flow Calculator.
- Every cost is your own estimate or quote; the calculator does not know typical costs for any business.
Frequently asked questions
What is the difference between one-time and running costs?
One-time costs are paid once to get started, such as equipment, a website, fit-out, deposits or the first batch of stock. Running costs repeat every month, such as rent, software, insurance and salaries, and keep coming before sales are high enough to pay them.
How many months of running costs should I cover?
Enough to keep going until sales cover your costs, which depends on your business. The Cash Flow Calculator can help you see when that might be from your own expected sales.
What contingency should I add?
There is no single right figure. A contingency covers costs you have not foreseen, so a business with more unknowns may want a larger one. The calculator starts at 15%, which you can change or switch off.
Should I include my own salary?
If you need to pay yourself while the business starts, yes: add it as a monthly running cost, because it is money the business has to find.
Does it include loan interest or tax?
Only if you add them. List loan repayments as a monthly cost and any tax or fees you know about as lines of their own.