One-time startup costs
Paid once before or at launch. Rename, add or remove anything.
Monthly running costs
Paid every month while you get going.
How much you need
| One-time costs | |
| Monthly costs | |
| Running costs | |
| Safety buffer | |
| Total startup money needed |
Break-even point
How many sales a month cover your monthly costs ()?
How this calculator works
- List your costs. The SBA’s list of common startup costs includes office space, equipment and supplies, communications, utilities, licenses and permits, insurance, a lawyer and accountant, inventory, salaries, advertising and marketing, market research, printed materials and a website.
- Split them into one-time and monthly costs.
- Cover enough months. The SBA suggests counting at least one year of monthly expenses.
- Add a buffer for costs you can’t predict.
- Check break-even with the SBA formula: fixed costs ÷ (price − variable cost per unit).
Source: SBA: Calculate your startup costs. Read more in How much does it cost to start a business?
Frequently asked questions
How do I calculate startup costs?
List every expense, estimate each one, then split them into one-time costs (such as equipment, permits and a logo) and monthly costs (such as rent, salaries and utilities). Add the one-time total to your monthly costs multiplied by the number of months you want to cover. This is the method the SBA describes.
How many months of costs should I plan for?
The SBA suggests counting at least one year of monthly expenses, and says five years is ideal for a full picture. The calculator defaults to 12 months; change it to suit your plan.
Why add a buffer?
Things you didn’t plan for always come up. In its break-even guidance, the SBA suggests adding a little extra, such as 10%, to cover expenses you can’t predict. The calculator defaults to 10%, and you can change it.
How is the break-even point calculated?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). This is the SBA’s formula. We use your monthly costs as the fixed costs, so the answer is how many sales per month cover them.
Are the example numbers real averages?
No. The “Load example” numbers are made up to show how the calculator works. Your costs depend on your business, location and choices. Get real quotes from suppliers and service providers.