Add your one-time launch costs and monthly operating expenses, grouped by category, and see how much capital you need to open and keep the doors open: one-time costs, a runway buffer of several months, a contingency reserve and any gap against the money you already have.
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Expenses (one per line: Category: Item, amount)
Text before the colon is the category. The last number on each line is the amount (1.5k works).
Recurring costs you pay every month until the business covers itself.
Buffer & funding
months
Months of operating costs to hold in reserve (6-12 is common).
%
Cushion for overruns, added to one-time costs and buffer.
$
Reduces the buffer. Leave 0 to plan for no sales.
months
Revenue grows linearly from 0; 0 = from month 1.
$
Savings, loans or investment you can count on.
Enter your values to see the result.
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How to use the Startup Cost Calculator
List one-time costs, one per line, like Equipment: Laptop, 1200. The word before the colon becomes the category.
List monthly costs such as rent, payroll, software, insurance and your own living draw.
Pick a runway buffer (months of costs to keep in reserve) and a contingency percentage.
Optionally add expected revenue and how many months it takes to reach it, plus funding you already have.
Read the total capital needed, the category breakdown and the funding gap, then download the tables as CSV.
How the startup capital is calculated
The calculator splits your money needs into three layers, which is how lenders and investors usually look at a startup budget:
One-time costs: everything paid once before or at opening, such as legal formation, permits, equipment, deposits, build-out, opening inventory and launch marketing.
Runway buffer: monthly operating costs × the number of months you want covered. If you enter expected revenue, each month only needs costs − revenue; with a ramp period, revenue climbs evenly from zero, so early months need more cash than later ones.
Contingency: (one-time costs + buffer) × contingency %. This covers overruns and forgotten items.
Total capital needed = one-time costs + runway buffer + contingency. Subtract the money you already have (savings, loans, investors) to see the funding gap you still need to close.
Example: $20,900 of one-time costs and $6,060 a month of operating costs with a 6-month buffer and 10% contingency: buffer = $36,360, contingency = $5,726, total = $62,986.
Startup cost checklist by category
Category
Typical one-time items
Typical monthly items
Legal & admin
Business registration, LLC or corporation filing, licenses, permits, trademark search
Get quotes, not guesses for the three biggest items. They drive most of the total.
Pay yourself on paper: include an owner draw so the buffer reflects your real cash needs.
Be conservative about revenue. Planning with a slow ramp (or none) protects you if sales take longer to arrive.
Revisit monthly: once you launch, compare actual spending with this plan and use the startup runway calculator to track how long your cash will last.
Frequently asked questions
How do I calculate startup costs?
Add up everything you must pay once before or at launch (equipment, deposits, build-out, licenses, opening inventory, branding), then add a reserve of monthly operating costs for the months before the business pays for itself, plus a contingency for overruns. Total capital = one-time costs + monthly costs × buffer months + contingency.
How many months of expenses should a new business keep in reserve?
There is no single rule, but many planners use 6 months as a minimum and 9 to 18 months for businesses that take longer to reach steady sales, such as restaurants or software startups. Use the table of 3 to 24 months to see how the buffer changes the total.
Should I include my own salary in startup costs?
Yes, if you will rely on the business for living expenses. Add an owner draw or salary as a monthly cost; otherwise your runway estimate will look longer than it really is.
What is a contingency reserve?
A percentage added on top of your estimates to cover cost overruns, delays and items you forgot. 10% to 20% is a common planning range; projects with construction or build-out usually need the higher end.
How does expected revenue change the result?
Revenue reduces the monthly net burn, so the buffer only has to cover costs minus revenue. If you enter a ramp period, revenue grows in a straight line from zero to your expected level, which is more realistic than assuming full sales from day one.
Are startup costs tax-deductible in the US?
Under IRC section 195 a business can generally deduct up to $5,000 of startup costs and $5,000 of organizational costs in the first year (reduced once costs exceed $50,000), and amortize the rest over 180 months. Equipment is usually depreciated instead. Check current IRS rules or a tax professional for your situation.
Is my expense list saved or uploaded?
Nothing is uploaded. The calculation runs in your browser and your last inputs are kept only in this browser's local storage, so you can come back and adjust them.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.