Startup Cost Estimator
Example: One-time startup costs (equipment, deposits, licenses): 15000 $ · Monthly operating costs (rent, payroll, software): 6000 $ · Months of runway before break-even: 6 months · Safety buffer: 15 %
| Total capital you need | $58,650 |
| One-time costs | $15,000 |
| Operating reserve | $36,000 |
| Safety buffer | $7,650 |
Worked example
Say you have $15,000 in one-time costs and $6,000 a month in operating costs, and you want six months of runway. The operating reserve is $6,000 x 6 = $36,000. Added to the one-time costs that is $51,000, and a 15% safety buffer adds about $7,650, for a total funding target near $58,650. Raising or saving to that number, rather than just the $15,000 launch cost, is the difference between a real cushion and running out of cash in month three.
Frequently asked questions
Why include an operating reserve at all?
Because revenue almost never covers costs on day one. The reserve is the cash that pays rent, payroll, and software while you build sales. Underfunding it is the most common reason otherwise sound businesses fail early.
How many months of runway should I plan for?
The right number tracks how quickly you expect to reach break-even. A service business with signed clients might need three to six months; a product business waiting on inventory and marketing traction often needs nine to twelve. When in doubt, plan for longer.
What belongs in one-time versus monthly costs?
One-time costs are things you buy once to open: equipment, deposits, initial inventory, incorporation, and licenses. Monthly costs recur: rent, payroll, insurance, subscriptions, and utilities. Keeping them separate makes the runway math accurate.
Is the safety buffer really necessary?
Yes. Estimates are optimistic and surprises are guaranteed. A 10 to 20% buffer absorbs the permit that costs more, the launch that slips, and the first slow month, without forcing an emergency raise.