Startup Cost Calculator
Estimate your total startup costs by industry, including one-time and ongoing monthly expenses.
Business Details
Estimated Startup Cost (Restaurant)
$280,875 — $924,250
Midpoint: $602,563
Cost Breakdown
LLC/Corp filing, registered agent, EIN
Business license, industry permits, zoning
Computers, machinery, POS systems, software
General liability, professional liability, workers' comp
Website, branding, initial ad campaigns, signage
Starting stock and supplies
Renovations, furniture, security deposit
First month payroll + hiring costs for 3 employees
Rent, utilities, payroll, supplies for first 6 months
Tips
- These are estimates — actual costs vary by location and specific business model.
- Many SBA lenders require 10-30% of startup costs as owner equity.
- Check your state's Small Business Development Center (SBDC) for free startup guidance.
- Consider starting lean and scaling up as revenue grows.
- Build-out costs are often the largest expense. Negotiate lease improvements with your landlord.
Disclaimer
These are rough estimates based on industry averages. Actual costs vary significantly by location, business model, and scale. Get specific quotes before committing capital.
Average Startup Costs by Industry
| Industry | Low Estimate | High Estimate |
|---|---|---|
| Online Business / E-commerce | $2,000 | $15,000 |
| Consulting / Freelance | $1,000 | $10,000 |
| Restaurant / Food Service | $100,000 | $500,000+ |
| Retail Store | $50,000 | $150,000 |
| Healthcare Practice | $100,000 | $500,000 |
| Construction / Trades | $30,000 | $150,000 |
Common Startup Cost Categories
One-time costs include business registration ($50-$500), legal fees ($500-$2,000), website development ($500-$5,000), equipment/furniture, initial inventory, and security deposits. Ongoing monthly costs include rent, utilities, insurance, payroll, marketing, software subscriptions, and loan payments. Most experts recommend having 6 months of operating expenses as a cash reserve.
Tax Deductions for Startup Costs
The IRS allows you to deduct up to $5,000 in startup costs in your first year (if total startup costs are under $50,000). Remaining costs are amortized over 180 months (15 years). Startup costs include market research, advertising, consultant fees, and employee training before opening. Equipment may qualify for Section 179 expensing instead.
SBA — Calculate Startup Costs→Frequently Asked Questions
How much cash reserve should I have?
Plan for at least 6 months of operating expenses, ideally 12 months. Most businesses take 12-24 months to become profitable. Running out of cash is the #1 reason startups fail — not a lack of good ideas.
Should I use personal savings or get a loan?
A mix is common. Most small businesses start with personal savings, then supplement with SBA loans, business credit cards, or investor funding. Avoid using retirement funds (despite ROBS arrangements) unless you thoroughly understand the risks.
Plan with: Break-Even Calculator and Business Loan Calculator.