One-Time Costs vs Monthly Costs
| Topic | One-time costs | Monthly costs |
|---|---|---|
| What they are | Paid once, to get started | Paid again every month to keep running |
| Examples | Equipment, renovation, permits, first stock, logo and launch promotion | Rent, salaries, utilities, supplies, transport, software, insurance |
How to Calculate Startup Costs in 5 Steps
1. List every one-time cost
Walk through your first day in business. What must you buy, build, or pay for before you can open? Write each item on its own line.
2. List your monthly costs
Rent, salaries, utilities, supplies, transport — everything you will pay every month, even in a slow month.
3. Get real prices
Ask suppliers for quotes, check prices in local shops, and ask your local authority about permit fees. Avoid guessing when you can ask.
4. Add a cash cushion
Sales often start slowly. Decide how many months of monthly costs you want to cover before sales pay the bills, and add that amount.
5. Compare with the money you have
Subtract your savings and any partner money. What is left is how much you still need to find — from a loan, an investor, or other sources.
Calculate Your Startup Costs
Free Startup Cost Calculator
Enter amounts in your own currency. Everything is calculated on this page — nothing is sent or saved.
One-time costs
Monthly costs
Total money needed = one-time costs + (monthly costs × months). Still to find = total money needed − money you already have.
Example (Illustrative)
Monthly costs: rent 600 · one staff salary 500 · utilities 200 · supplies 200 = 1,500
Cash cushion: 1,500 × 3 months = 4,500
Total money needed: 5,000 + 4,500 = 9,500. With 6,000 in savings, the bakery still needs 3,500.
1,500 × 3 months4,500
Common Mistakes
- Forgetting small costs. Permits, deposits, delivery, and bank fees add up.
- No cash cushion. Many new businesses need time before sales cover costs.
- Mixing one-time and monthly costs. Keep them in separate lists.
- Leaving out your own pay. If you need money to live on, include it.
Where It Fits in Your Business Plan
Startup costs and monthly costs belong in the Financial Plan and Projections section. They lead to your funding needs and your break-even point — the moment sales cover all your costs. See the financial step in How to Write a Business Plan.
Sources
- U.S. Small Business Administration — Calculate startup costs (free fillable worksheet; checked November 2026).
Frequently Asked Questions
What are startup costs?
The money you spend before your business earns steady income: one-time costs such as equipment and permits, plus monthly costs such as rent and salaries for the first months.
How do I calculate how much money I need to start a business?
Add your one-time costs to your monthly costs multiplied by the number of months before sales cover your bills. Then subtract the money you already have.
How many months of costs should I plan for?
It depends on your business and how fast sales grow. Choose a number you can explain, and plan for slow sales at the start.
Is this startup cost calculator free?
Yes. It is free, works in your browser, and does not send or save your numbers.
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