Calculate your startup costs
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Calculate your startup costs | U.S. Small Business Administration Skip to main content Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock ( Lock Locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. Calculate your startup costs How much money will it take to start your small business? Calculate the startup costs for your small business so you can request funding, attract investors, and estimate when you’ll turn a profit. Content Calculate your business startup costs before you launch The key to a successful business is preparation. Before your business opens its doors, you’ll have bills to pay. Understanding your expenses will help you launch successfully. Calculating startup costs helps you: Estimate profits Conduct a break-even analysis Secure loans Attract investors Save money with tax deductions Break-Even Analysis Calculator Use this calculator to discover your break-even point and determine your future profits. Get your profit analysis Identify your startup expenses Most businesses fall into one of three categories: brick-and-mortar businesses, online businesses, and service providers. You’ll face different startup expenses depending on your business type. There are common startup costs you’re likely to have no matter what. Look through the following list, and make sure to add any other expenses that are unique to your business: Office space Equipment and supplies Communications Utilities Licenses and permits Insurance Lawyer and accountant Inventory Employee salaries Advertising and marketing Market research Printed marketing materials Making a website Estimate how much your expenses will cost Once you have your list of expenses, you can estimate how much they’ll actually cost. This process will be different for each expense you have. Some expenses will have well-defined costs — permits and licenses tend to have clear, published costs. You might have to estimate other costs that are less certain, like employee salaries. Look online and talk directly to mentors, vendors, and service providers to see what similar companies pay for expenses. Add up your expenses for a full financial picture Once you’ve identified your business expenses and how much they’ll cost, you should organize your expenses into one-time expenses and monthly expenses. One-time expenses are the initial costs needed to start the business. Buying major equipment, hiring a logo designer, and paying for permits, licenses, and fees are generally considered to be one-time expenses. You can typically deduct one-time expenses for tax purposes, which can save you money on the amount of taxes you’ll owe. Make sure to keep track of your expenses and talk to your accountant when it’s time to file your taxes . Monthly expenses typically include things like salaries, rent, and utility bills.
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