How Much Does It Cost to Start a Business? Build Your Estimate

October 31, 2026

Startup Cost Calculator Excel template
Startup Cost Calculator Excel templateStartup Cost Calculator

There’s no single answer to “how much does it cost to start a business?” — a consulting business may need $2,000, a restaurant $200,000. What you need is your own estimate, built in three parts.

Part 1: One-time startup costs

Costs you pay before or at opening:

  • Legal and licenses: registration, permits, lawyer, accountant.
  • Equipment and furniture.
  • Initial inventory.
  • Renovation of the space and signage.
  • Technology: computers, website, software setup.
  • Launch marketing.
  • Deposits: rent deposit, utility deposits.

Part 2: Monthly operating costs

What it costs to keep the doors open each month: rent, salaries (including your own minimum), utilities, insurance, software, marketing, supplies, loan payments.

Part 3: Runway

Few businesses are profitable from day one. Runway is how many months of operating costs you fund before sales cover them. A common recommendation is at least 6 months; more if sales take time to ramp up (B2B, restaurants).

Total needed = one-time costs + (monthly costs × months of runway)

Costs people forget

  • Insurance (liability, property)
  • Professional fees in the first year
  • Credit card processing equipment and fees
  • Initial stock of packaging and supplies
  • Your own living expenses while the business grows
  • A contingency of 10–15%

Funding sources

List what you have: personal savings, bank loans, family and friends, investors, grants. Funding − total needed = gap. If the gap is negative, you can reduce costs (lease equipment, start smaller), increase funding, or plan a longer path to opening.

Present it clearly

Banks and investors want to see categories, totals and how the money will be used. A one-page summary with a chart of costs by category is exactly what they expect.

Template

The Startup Cost Calculator organizes one-time costs by category, monthly operating costs, the runway calculation, funding sources and the funding gap, with a chart. Once you know your costs, use the Break-Even Analysis to see the sales you’ll need.

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