How much does it cost to start a business?

Costs vary by business type: home-based ($2,000-$10,000), e-commerce ($5,000-$25,000), professional services ($10,000-$50,000), retail ($50,000-$150,000), restaurant ($100,000-$500,000+). Location, equipment, and inventory are the biggest variables.

How much of my startup costs should I finance?

Lenders typically want 10-30% from personal savings. The rest can come from SBA loans, term loans, or lines of credit. SBA loans require 680+ credit, a business plan, and usually collateral.

What is a working capital reserve and why do I need one?

A working capital reserve is cash to cover operating expenses until the business generates enough revenue. Most advisors recommend 3-6 months of expenses. Running out of cash is the top reason startups fail.

Should I add a buffer to my startup cost estimate?

Yes, add 10-20% for unexpected costs. Permits, equipment, and hiring often cost more than planned. This calculator shows your estimate plus a 20% buffer recommendation. It is better to over-prepare than run short.

Startup Cost Calculator

Walk through 8 common expense categories to build a complete startup cost estimate. Choose an industry template for realistic defaults, see a breakdown by category, compare lean vs comfortable scenarios, and calculate how much financing you need after personal savings.

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Estimate your startup costs by walking through 8 common expense categories. Choose an industry template for realistic defaults, then adjust each line item to match your plans.

Costs are estimates based on national averages. Actual costs vary by location, scale, and industry requirements.

Start with an industry template (optional)

Business Registration / Incorporation

LLC, Corp filing fees

Legal Fees

Attorney for contracts, review

Accounting Setup

Bookkeeping system, CPA

Licenses & Permits

Business license, industry permits

Trademark / IP

Optional

Subtotal$2,500

Running Total

Legal

$2,500

Location

$2,500

Equipment

$2,800

Inventory

$500

Marketing

$4,200

Staffing

Insurance

$1,000

Reserve

$7,000

Total$20,500

With 20% buffer: $24,600

Your Estimated Startup Costs

Total Estimated Cost

$20,500

Recommended with 20% buffer: $24,600

Reserve

$7,00034%

Marketing

$4,20020%

Equipment

$2,80014%

Legal

$2,50012%

Location

$2,50012%

Insurance

$1,0005%

Inventory

$5002%

Funding Plan

Personal Savings

Friends & Family

Other Sources

Non-loan sources

$20,000

Financing needed

$500

With 20% buffer

$4,600

Launch Scenarios

Lean Launch

$14,200

Reduced reserve, smaller marketing budget, and less equipment spending. Minimum viable budget.

Your Estimate

Current

$20,500

Based on the numbers you entered across all categories.

Comfortable Launch

$25,750

Larger reserve, better marketing presence, and upgraded equipment. Room for the unexpected.

We recommend budgeting 20% above your estimate for unexpected costs: $24,600.

Average Startup Costs by Business Type

Business Type	Typical Range
Home-Based Business	$2,000 - $10,000
Online / E-Commerce	$5,000 - $25,000
Professional Services	$10,000 - $50,000
Retail Store	$50,000 - $150,000
Restaurant	$100,000 - $500,000
Manufacturing	$100,000 - $1,000,000+

You need approximately $500 in startup financing.

SBA loans, term loans, and lines of credit are common options for startup funding. No impact to your credit score.

See Your Options Check Your ROI

Planning Your Startup Budget

Startup costs fall into two groups: one-time expenses you pay before opening (registration, equipment, initial inventory) and ongoing expenses you need to cover until revenue kicks in (rent, payroll, marketing). The most common budgeting mistake is underestimating the second group. Most new businesses do not turn a profit for months, and running out of cash is the top reason startups fail. This calculator helps you account for both by including a working capital reserve category alongside your launch costs.

Common Startup Cost Mistakes

Three mistakes that catch first-time business owners off guard. First, underestimating working capital: plan for 3 to 6 months of operating expenses as a cushion, not just enough to open the doors. Second, forgetting hidden costs like utility deposits, professional liability insurance, permit renewals, and payroll taxes (typically 15% to 30% on top of wages). Third, skipping the contingency buffer. Something always costs more than quoted or takes longer than planned. Add 10% to 20% to your estimate. This calculator includes a 20% buffer recommendation and shows a "comfortable launch" scenario that builds in extra room. Use our working capital calculator to go deeper on your ongoing cash needs.

How to Fund Your Startup

Most startups use a mix of personal savings and financing. Lenders want to see you invest at least 10% to 20% of the total cost from your own funds, which shows commitment and reduces their risk. For the remainder, common options include SBA loans (lowest rates but longer process, typically 680+ credit required), business term loans (faster funding, good for specific purchases), lines of credit (flexible draw-and-repay for ongoing expenses), and equipment financing (uses the equipment as collateral for lower rates). Use our SBA loan calculator to estimate payments on the financing portion.

Is Your Investment Worth It?

Once you know your startup costs, the next question is whether the business will generate enough revenue to pay back the investment and produce a profit. Our ROI calculator helps you model that scenario: enter the financing amount, expected revenue increase, and ramp-up timeline to see your projected return. If you already know how much you want to borrow, the loan payment calculator shows your exact monthly obligation. Talk to a funding specialist to explore your startup financing options with no impact to your credit score.

How It Works

Choose a Template or Start Custom

Pick an industry template (restaurant, retail, e-commerce, etc.) for realistic starting values, or start from scratch with the custom option.

Walk Through 8 Expense Categories

Fill in costs for legal, location, equipment, inventory, marketing, staffing, insurance, and working capital. Each category shows a subtotal as you go.

See Your Total & Funding Plan

Get a category breakdown, three launch scenarios (lean, your estimate, comfortable), and calculate how much financing you need after personal savings.

What You Get

8 Expense Categories

Organized line items covering every common startup cost so you do not miss anything in your planning.

Industry Templates

Pre-filled defaults for restaurant, retail, professional services, e-commerce, contractor, and home-based businesses.

Category Breakdown Chart

See where your money goes with a visual breakdown showing each category as a percentage of total cost.

Funding Plan Calculator

Enter personal savings and other sources to see exactly how much financing you need to cover the gap.

Launch Scenarios

Compare lean, current, and comfortable launch budgets to understand your range of options.

20% Buffer Recommendation

A recommended total that adds a contingency buffer for the unexpected costs that always come up.