STARTUP COSTS
Know the cost to start, then the cost to keep going.
Separate what you pay once from what hits the bank account every month.
FORMULA
Capital needed to launch
Add one-time costs to the monthly burn for the months you want to fund. Then add your buffer.
EXAMPLE
$8,000 to launch, $2,000 monthly burn, six months of runway
The plan needs $20,000 before contingency: $8,000 of launch costs plus $12,000 to fund six months. A 15% reserve brings the target to $23,000.
- One-time costs
- $8,000
- Six-month runway
- $12,000
- Capital target
- $23,000
MAKE THE PLAN REAL
Make the budget easy to change.
When each cost sits in the right bucket, you can cut runway, change monthly burn, or see where the money is going.
One-time costsLegal, equipment, setup, and launch work
Monthly costsTeam, software, marketing, rent, and overhead
ContingencyA visible reserve for uncertainty, not a hidden guess
QUESTIONS
Startup cost questions
How do you calculate startup costs?
Add one-time launch costs to the monthly operating costs you need to fund before customer payments cover them. Then add a contingency reserve you choose for unexpected costs.
What counts as a one-time startup cost?
Typical one-time costs include legal formation, licenses, equipment, initial inventory, deposits, a website build, branding, and launch work. A cost belongs here only if it does not repeat each month.
What should be included in monthly operating costs?
Include team costs, software, rent, insurance, marketing, accounting, and other expenses that continue even when sales are low or zero.
How much runway should a startup plan for?
The right runway depends on the business and access to capital. This calculator lets you test the number of months you intend to fund, rather than assuming a generic amount.
Why add a contingency reserve?
Estimates rarely capture every cost or delay. An explicit contingency makes the buffer visible and keeps it separate from costs you expect to spend.