What are my new business startup costs?

Before you launch a new venture, you should take the time to estimate the total capital that will be needed. Startup costs are divided into two main categories: one-time startup costs and recurring monthly expenses. Depending on when you expect to receive payments for your goods and services, it may be wise to begin with several months of working capital. Use this calculator to help discover and estimate your total business startup costs. Be sure to only include those items that are essential to start the business.

Input

Number of months to fund monthly expenses ?

How many months of operating costs you want to have covered before the business is expected to break even.

Monthly Costs

Owner(s) salaries ?

$

Monthly draw or salary you plan to pay yourself or co-owners.

Employee salaries and commissions ?

$

Monthly payroll for staff, including commissions.

Rent/Lease payments ?

$

Monthly rent or lease payment for your business space.

Advanced options 11

One-Time Fixed Costs

Office Furniture/Fixtures/Equipment ?

$

One-time cost to furnish and equip your workspace.

Building Improvements/Remodeling ?

$

One-time cost of renovating or improving your business space.

Starting inventory ?

$

One-time cost of the initial stock needed to open.

Licenses/Permits/Franchise Fees ?

$

One-time cost of business licenses, permits, or franchise fees.

Cash on Hand/Operating Capital ?

$

Extra cash reserve kept on hand for unexpected costs.

Advanced options 5

Lease/Rent deposit ?

$

Upfront security deposit required by your landlord.

Public utility deposits ?

$

Deposits required by utility providers to start service.

Legal/Professional fees ?

$

One-time fees for legal, accounting, or consulting help to get set up.

Advertising/Web Site/Promotion ?

$

One-time launch cost for your website, branding, or promotional campaign.

One-Time Miscellaneous ?

$

Any other one-time startup cost not listed above.

Enter your values and select Calculate.

Total Startup Capital Needed is the figure to focus on: it combines every one-time purchase with your monthly operating costs multiplied by the number of months you expect to fund before the business supports itself. It does not include a cushion for surprises beyond what you've entered as cash on hand, and it assumes your monthly costs stay flat over the funding period.

Two inputs tend to move this number the most: the number of months you choose to fund, and your largest recurring line items, usually owner or employee salaries and rent. Stretching the funding period even by a month or two, or trimming payroll and rent assumptions, will shift the total more than adjusting any of the smaller categories.

This is a planning estimate, not a loan approval or a guarantee that your business will break even on schedule. It leaves out taxes on income, financing costs beyond the interest line you entered, and any change in prices or demand once you're actually operating.

Revisit this once you have firmer quotes for rent, licenses, or equipment, and again whenever your timeline to profitability changes. Bringing this breakdown to a lender or accountant is a reasonable next step, and the fact that you've put a number on paper already puts you ahead of many first-time founders.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.