Startup Cost Calculator for a Small Business
Add up every one-time purchase, a cash reserve for the first months, and what you would need to borrow. Start from one of five common small businesses or a blank sheet; nothing is saved or sent.
Your startup budget, for your townFree numbers first · $49 for the full planExample loan payment: about $1,890 a month over 7 years at 13% — the bank prime rate plus the SBA’s maximum 7(a) spread for a loan this size. Most lenders charge less; yours sets the real terms.
Startup costs for five common small businesses
Typical starting assumptions from our cost model, including 3 months of running costs as a cash reserve:
| Business | Cost to open | Largest line | Cash reserve |
|---|---|---|---|
| Cleaning business | $4,610 | Vacuums, caddies and cleaning tools · $900 | $1,260 |
| Vending machine business | $23,350 | Vending machines × 5 · $17,500 | $1,200 |
| Landscaping business | $44,867 | Pickup truck (used) — enter 0 if you already own one · $20,000 | $9,717 |
| Junk removal business | $56,152 | Box or dump truck (used) · $35,000 | $15,502 |
| Food truck | $113,916 | Truck, kitchen build-out and fire suppression · $85,000 | $17,216 |
Vending figures are for 5 machines. Cleaning and vending are owner-operated in these examples; the others include a helper’s wages in the reserve.
What to include
- Equipment and vehicles — the biggest swing in almost every budget. Get real quotes; buy used where reliability allows.
- Opening inventory or supplies — enough for your first weeks of sales.
- Legal setup — LLC or corporation filing, a registered agent, an EIN (free from the IRS).
- Licenses, permits and inspections — they differ by state, county and city; call before you buy equipment.
- Insurance — liability at a minimum; commercial auto if you drive for work.
- Branding — logo, website or booking page, signage.
- A cash reserve — months of running costs while sales build. Lenders look for it.
Next, check that the business can carry its costs: the break-even calculator shows the monthly sales you need.
Questions
How much does it cost to start a small business?
It depends almost entirely on equipment. Of the five businesses we model with typical assumptions, an owner-operated cleaning business opens for about $4,610 and a food truck for about $113,916, including a cash reserve.
What counts as a startup cost?
Everything you pay before the first sale: equipment, vehicles, opening inventory or supplies, deposits, legal filing, licenses and permits, insurance, branding — plus the cash to carry the business while sales build.
How much cash reserve do I need?
Our plans hold 3 months of fixed costs and wages. Lenders look for a reserve because most new businesses sell less than they will at full speed in their first months.
Should I borrow to cover startup costs?
Most owners combine their own cash with a loan. Borrow for equipment that earns money; pay for extras from cash. A lender will ask how the payment is covered — that is what break-even shows.
Sources
- U.S. Census Bureau: County Business Patterns, Economic Census and Nonemployer Statistics.
- U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics.
- Federal Reserve: bank prime loan rate (via FRED).
Figures are computed by Main Street Plans from the published federal files listed above. See how we build our numbers.