About Startup Cost Calculator

Calculate total startup costs for new ventures across categories. Part of the DevTools Surf developer suite. Browse more tools in the Business & Corporate collection.

Use Cases

• Estimate total capital required to launch a specific type of business before seeking investment.
• Break down startup costs by category (legal, equipment, marketing, working capital) for a business plan.
• Calculate the minimum viable launch budget by identifying which costs can be deferred post-revenue.
• Compare startup cost profiles between two different business models or locations.

Tips

• Separate one-time costs (equipment, incorporation, trademark) from recurring costs (rent, salaries, subscriptions) — they require different financial planning approaches.
• Add a 20–30% contingency buffer to all pre-revenue cost estimates — startup costs routinely run 25–40% over initial projections.
• Calculate your runway: months of operating costs covered by your initial capital. Most advisors recommend 18 months minimum before expecting sustainable revenue.

Fun Facts

• The average US small business takes 2–3 years to become profitable, according to Small Business Administration data. Only 50% survive past year 5.
• Incorporation costs in the US range from $50 (Wyoming LLC online) to $800+ (California LLC annual fee), but choosing the right state for your business structure can save thousands in taxes over the company's lifetime.
• Paul Graham (Y Combinator) has noted that the cheapest viable MVP in software was typically $500,000 in 2005, about $50,000 in 2010, and under $5,000 in 2015 — driven by cloud infrastructure, open source, and no-code tools.

FAQ

What startup costs are tax-deductible in the US?

Up to $5,000 in startup costs and $5,000 in organizational costs can be deducted in the first year (IRC Section 195). Remaining costs are amortized over 180 months. Capital expenses (equipment, IP) have separate depreciation rules.

How do I estimate working capital needs?

Working capital = (monthly operating expenses) × (months before positive cash flow). Add 2–3 months buffer for delayed customer payments and unexpected costs.