Small Business Startup Cost Calculator
Build a complete first-year startup cost estimate — one-time setup costs plus 12 months of operating overhead plus a 6-month cash reserve.
One-Time Startup Costs
Monthly Operating Costs
Planning Your Startup Capital
The most common reason startups fail in year one is running out of cash — not having a bad product. Realistic cost planning before launch is the single most important financial exercise for any new business owner. This calculator structures your costs into three buckets: one-time setup, ongoing operations, and cash reserve for unexpected shortfalls.
Why You Need a 6-Month Reserve
Most businesses take 6–18 months to reach consistent profitability. During that ramp-up period, costs are constant while revenue is unpredictable. A 6-month operating reserve means you can cover all bills for half a year even if revenue comes in at zero. Without this buffer, a slow quarter can force closure of an otherwise viable business.
Deducting Startup Costs
The IRS allows up to $5,000 in startup costs to be deducted in your first year of business (reduced if total startup costs exceed $50,000). The remaining costs are amortized over 15 years. This means a business that spends $30,000 in startup costs can deduct $5,000 immediately and $1,667/year thereafter — consult a CPA to structure this optimally.