🚀 Launch Planning
Startup Cost
Calculator
Underestimating startup costs is the #1 reason new businesses fail. Build a comprehensive launch budget before you spend a dollar.
💧 Working Capital (Operating Reserve)
Total Startup Capital Needed
$0
One-time costs + working capital reserve
One-Time Costs
$0
Equipment, setup, pre-opening
Working Capital
$0
Operating reserve + salary
Monthly Burn Rate
$0
Ops + owner salary
Reserve Runway
0 months
At monthly burn rate
Cost Breakdown
Equipment & Technology—
Pre-Opening Costs—
Working Capital Reserve—
Owner Salary Reserve—
Total Capital Required—
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Frequently Asked Questions
How much working capital should a startup have? ▾
Most advisors recommend 6-12 months of operating expenses as a reserve. 6 months is the minimum; 12 months is safer, especially for businesses with long sales cycles, seasonal revenue, or high upfront inventory needs. The working capital reserve covers you when revenue is slower than expected — which it almost always is in the first year. The most common reason startups fail isn't a bad idea; it's running out of cash before finding product-market fit.
What startup costs can I deduct on taxes? ▾
The IRS allows up to $5,000 in startup costs to be deducted in the first year, with any excess amortized over 15 years (Section 195). Qualifying startup costs include market research, travel for site selection, training employees before opening, and professional fees. Organizational costs (forming an LLC or corporation) are also deductible up to $5,000 separately. Capital expenditures (equipment) are typically depreciated, not expensed immediately — though Section 179 allows immediate expensing for most equipment.
Should I include my own salary in startup costs? ▾
Yes — absolutely. Many first-time entrepreneurs forget to account for their own living expenses while building the business. If you're leaving a job to start a business, you need enough capital to replace your salary until the business is profitable. This is often the largest line item in startup costs. Budget realistically based on your actual monthly expenses, not a hoped-for minimum.