Idea Stage

Startup Cost Calculator

Add up one-time and recurring costs. See total launch cost and how much capital you actually need.

One-time costs
Monthly recurring costs

Why most new businesses underestimate startup cost

Founders routinely underestimate startup costs by 40–60%. Not because the individual items are expensive — because they forget to include the dozen small things that add up. Equipment. Legal. Initial inventory. Setup fees. Testing budget. Contingency for the first failure.

This calculator forces the sum into view. Add a 20–30% buffer for surprises, then compare the total against your actual available cash.

One-time vs recurring costs

  • One-time — domain, logo, brand assets, initial inventory, equipment, legal, trademark, website build. Paid once.
  • Recurring — hosting, subscriptions, tools, ads, contractors, salaries, payment processing. Paid monthly, forever.

The recurring number matters more for survival. A business with $200/month in recurring costs needs $200 in gross profit just to break even before any owner salary. A business with $2,000/month needs $2,000.

Runway math

Runway = cash on hand ÷ monthly costs. If you have $5,000 and monthly costs are $500, you have 10 months of runway. If monthly costs are $2,000, you have 2.5 months.

The trap: runway is usually calculated with current costs, not projected costs. If you plan to scale ads from $200 to $2,000, your runway shrinks 10×. Plan runway at the highest realistic monthly cost, not the lowest.

How much runway is enough?

  • Digital / service business — 3–6 months
  • E-commerce with inventory — 6–12 months
  • Physical product / hardware — 12–24 months
  • SaaS / subscription — 12–18 months

Under 3 months of runway is high risk. Under 1 month is very high risk — you have almost no room to recover from any unexpected setback.

Worked example

One-time: domain $50 + logo $100 + inventory $500 + equipment $300 + legal $100 = $1,050. Monthly: $40 + $30 + $200 + $0 + $50 = $320. Runway planned: 12 months.

  • Total capital needed for year 1 = $1,050 + ($320 × 12) = $4,890
  • With 25% buffer = $6,112
  • If you have $5,000 in the bank, this plan is thin — you're short by ~$1,100

What this tool does not include

  • Your own time as a cost (opportunity cost — real but not cash)
  • Taxes
  • Unexpected repairs, refunds, chargebacks
  • Ramp-up time before revenue starts
  • Working capital tied up in inventory

Add a buffer for all of these. The cleanest number is usually 30% above your initial estimate.

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Frequently asked questions

How much does it cost to start an online business?

Digital-first businesses can start under $500. E-commerce with physical inventory usually needs $2,000–$10,000. The calculator breaks one-time vs recurring costs.

What is a one-time vs recurring cost?

One-time: domain, logo, initial inventory, equipment. Recurring: hosting, subscriptions, ads, salaries, payment processing.

How much runway do I need?

Plan for 6–12 months of monthly costs, because revenue ramps slower than expected. Under 3 months of runway is high risk.

Should I include my own time as a cost?

Not as cash cost, but as opportunity cost. If you would otherwise earn $3,000/month, that is a real cost to the business decision.

How accurate is this calculator?

As accurate as your inputs. It is a planning model. Add 20–30% buffer for surprises.

Estimates only. Actual startup costs vary widely by country, business model, and scale. This is a planning tool. Not financial or accounting advice.