How much does it cost to start a small business?

The average small business costs $30,000-$50,000 to launch, but the range is huge. A consulting firm can start for under $5,000. A restaurant can cost $250,000 or more. The number depends on your industry, location, and whether you need physical space, equipment, and inventory. Use this calculator to get a realistic estimate for your specific situation.

What is working capital and how much do I need?

Working capital is the cash reserve you keep to cover monthly operating expenses (rent, payroll, utilities, supplies) until your revenue is enough to cover them. Most advisors recommend 3-6 months of expenses. Seasonal businesses or those with long sales cycles should budget closer to 6-12 months.

What startup costs do new business owners usually forget?

The most commonly overlooked costs are insurance premiums, professional licenses and permits, legal fees for entity formation and contracts, accounting and bookkeeping setup, initial marketing spend, and a contingency buffer for unexpected expenses. Missing even one of these can throw off your budget by thousands of dollars.

Should I include my own salary in startup costs?

Yes. If you are leaving a job to start your business, you need enough cash to cover your personal living expenses during the startup phase. Include your personal draw or salary in your monthly expenses when calculating working capital. Many founders underestimate how long it takes to reach a livable income.

How do I fund my startup costs if I do not have enough savings?

Common funding options include SBA microloans ($500-$50,000), SBA 7(a) loans for larger amounts, business credit cards for short-term needs, personal savings, friends and family, and crowdfunding. Some founders use a combination. Start by knowing your total number so you can ask for the right amount.

What is a contingency budget and how much should I set aside?

A contingency budget is a cash buffer for unexpected costs: construction delays, permit issues, equipment repairs, supplier price increases, or anything else that was not in your original plan. Budget 10-20% of your total startup costs as contingency. Businesses with construction or buildout should lean toward 20%.

How much does it cost to start a small business?

The average small business costs $30,000-$50,000 to launch, but the range is huge. A consulting firm can start for under $5,000. A restaurant can cost $250,000 or more. The number depends on your industry, location, and whether you need physical space, equipment, and inventory. Use this calculator to get a realistic estimate for your specific situation.

What is working capital and how much do I need?

Working capital is the cash reserve you keep to cover monthly operating expenses (rent, payroll, utilities, supplies) until your revenue is enough to cover them. Most advisors recommend 3-6 months of expenses. Seasonal businesses or those with long sales cycles should budget closer to 6-12 months.

What startup costs do new business owners usually forget?

The most commonly overlooked costs are insurance premiums, professional licenses and permits, legal fees for entity formation and contracts, accounting and bookkeeping setup, initial marketing spend, and a contingency buffer for unexpected expenses. Missing even one of these can throw off your budget by thousands of dollars.

Should I include my own salary in startup costs?

Yes. If you are leaving a job to start your business, you need enough cash to cover your personal living expenses during the startup phase. Include your personal draw or salary in your monthly expenses when calculating working capital. Many founders underestimate how long it takes to reach a livable income.

How do I fund my startup costs if I do not have enough savings?

Common funding options include SBA microloans ($500-$50,000), SBA 7(a) loans for larger amounts, business credit cards for short-term needs, personal savings, friends and family, and crowdfunding. Some founders use a combination. Start by knowing your total number so you can ask for the right amount.

What is a contingency budget and how much should I set aside?

A contingency budget is a cash buffer for unexpected costs: construction delays, permit issues, equipment repairs, supplier price increases, or anything else that was not in your original plan. Budget 10-20% of your total startup costs as contingency. Businesses with construction or buildout should lean toward 20%.

Starting a business requires upfront capital for equipment, licenses, inventory, marketing, and working capital reserves. Use this calculator to tally every one-time expense and understand how much runway you need before your first dollar of revenue arrives. Most small businesses need $10,000–$50,000 to launch; knowing your number prevents the #1 cause of startup failure: running out of cash.

Back to Calculators

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Startup Cost Calculator

Estimate the total cost to launch your business, see where your money goes, and plan your runway.

Business Type

Lease / Rent Deposit

Security deposit + first/last month rent

Equipment Costs

Machinery, computers, furniture, tools

Inventory

Initial stock or raw materials

Licenses & Permits

Legal Fees

Entity formation, contracts, trademarks

Insurance (First Year)

General liability, property, workers' comp

Marketing & Branding

Website, logo, signage, launch ads

Working Capital

Estimated Monthly Expenses

Rent, payroll, utilities, supplies per month

Months of Reserves

Miscellaneous / Contingency

Budget buffer for unexpected costs (10-20% of total recommended)

How to Estimate Your Startup Costs

Every business costs money to launch. The question is how much, and where does it go? Getting this number right is the difference between a smooth launch and running out of cash in month two.

What Counts as a Startup Cost

Startup costs fall into two buckets:

One-time costs are expenses you pay once to get the doors open: lease deposits, equipment, legal formation, licenses, initial inventory, branding, and signage.

Working capital is the cash reserve you need to cover ongoing monthly expenses (rent, payroll, utilities, supplies) until revenue covers them. Most businesses should budget 3-6 months of working capital.

Common Startup Cost Categories

Lease / Rent Deposit

Landlords typically require first month's rent, last month's rent, and a security deposit. Budget 2-3 months of rent as your deposit line item.

Equipment

This varies wildly by industry. A consulting firm might need $3,000 in laptops and software. A restaurant might need $100,000+ in kitchen equipment. Get quotes before guessing.

Inventory

Retail and product businesses need initial stock. Order enough to fill your shelves and handle the first few weeks of sales, but do not over-order. Cash tied up in unsold inventory is cash you cannot use for anything else.

Licenses and Permits

Business license, sales tax permit, health department permits, professional licenses, zoning permits. Costs range from $100 to $5,000+ depending on your industry and location.

Legal Fees

Entity formation (LLC, S-Corp), operating agreements, commercial lease review, trademark filing, and contractor agreements. Budget $1,500-$5,000 for a typical small business.

Insurance

General liability, property insurance, workers' comp (if hiring), professional liability, and commercial auto. Get quotes from at least three carriers. First-year premiums are often due upfront.

Marketing and Branding

Logo, website, signage, business cards, grand opening marketing, and initial ad spend. This is where many businesses underspend. Without customers, nothing else matters.

Contingency

Add 10-20% on top of your total for unexpected costs. Construction delays, permit issues, equipment problems, and supplier price changes happen to almost every new business.

How to Use This Calculator

Select your business type for context.
Enter your best estimates for each one-time cost category.
Enter your estimated monthly expenses and how many months of working capital you want.
The calculator shows your total startup cost, a breakdown chart, your estimated monthly burn rate, and how many months of runway your working capital provides.

Rules of Thumb by Business Type

Restaurant / Food Service: $100,000-$500,000+ depending on size and concept. Equipment and buildout are the biggest costs.
Retail Store: $50,000-$150,000. Inventory and lease deposits dominate.
Consulting / Professional Services: $5,000-$25,000. Low overhead, mainly legal, marketing, and technology.
Food Truck: $50,000-$200,000. The truck itself is the biggest expense.
E-Commerce: $5,000-$50,000. Inventory, website, and marketing are the main costs.

What to Do With Your Number

Once you have a total startup cost:

Compare to your available capital. If there is a gap, you need financing, investors, or a phased launch plan.
Run the Burn Rate Calculator to see how long your cash lasts once you are operating.
Build a Cash Flow Forecast to project when you will break even.
Revisit quarterly. Actual costs always differ from estimates. Track spending against your budget and adjust.

The goal is not a perfect number. The goal is a realistic range so you can plan, raise the right amount of capital, and avoid the most common reason businesses fail: running out of cash.