Start-up costs*
Our start-up calculator can help you decide whether your idea will make money
before you invest your time and capital.
Our start-up cost calculator can help you decide how much money
you’ll need to have before you start up your new business.
What does the start-up costs calculator do?
Many businesses fail because they don’t have sucient cash to last
until they become protable – a mistake easily remedied with our
simple start-up costs calculator.
This tool addresses two key nancial areas that must be examined
in order to make the smartest business decision. They are:
Initial costs
Working capital
Tallying costs
All start-ups have start-up costs, followed by running costs. Your
initial costs include expenses associated with starting your business
such as:
Equipment and assets – such as vehicles and furniture.
Oce equipment – such as computers, telephone systems,
copiers, and water coolers.
One-time costs – such as franchise fees, rent deposit, initial
lease payments, legal fees, and initial stock.
While these costs won’t necessarily repeat in the near future, your
business will incur other operational costs on an ongoing basis. Your
running costs are those that you’ll incur regardless of whether you
make a sale or not.
Examples of running costs include:
Rent
Insurance
Advertising
Utilities
Phone and Internet services
Salary and payments to subcontractors
Postage
The start-up costs calculator prompts you to enter both initial (or
capital) costs and your monthly running costs. You’ll also need
to make an estimate of the time you think it will take before your
business becomes protable. This helps to calculate an estimate of
the amount of cash you’ll need to cover your running costs.
Once you’ve entered your estimated costs and revenue gures,
the calculator presents you with a summary estimating how much
money you need to get started, how much money you’ll need to run
your business on a monthly basis, and how much cash you’ll need
to survive until the business becomes protable.
Why use the start-up costs calculator?
The start-up costs calculator can save you a great deal of money
and heartache if you don’t have sucient reserves to survive the
crucial start-up period. Wouldn’t you rather work it out on paper than
nd out the hard way?
It will also help you make your case should you seek a small
business loan or a relationship with private investors.
Start-up costs
INITIAL COSTS
1 2
WORKING CAPITAL CALCULATION
Equipment & assets
Extra equipment, e.g., vehicles
Your monthly costs
Accounting
Extra oce equipment, e.g., computers
Fitting out, e.g., ttings, interior and exterior Communications
Bank Fees
Freight and postage
Interest
Motor vehicle expenses
Rent
Salaries and employee expenses
Subscriptions
Other "one-o" costs
Advisor fees, e.g., accountant fees
Initial lease payments (new equipment etc.)
Initial stock
License fees
Oce supplies
Stationery
Insurance
Loan repayments
Power
Repairs and maintenance
Franchise and other fees to be paid
Initial promotion costs, e.g., website & signs
Insurance
Purchase cost of existing venture
Training costs & subscriptions
Web site hosting, Internet costs
Total monthly costs
Tax payments
Total Initial costs
In the rst few months many businesses need a
surplus of cash to cover overhead costs, as the
initial prot from sales doesn’t cover all the monthly
How many months coverage do you think you need?
YOUR START-UP COSTS
Total initial costs
Total monthly costs
Months of overhead coverage x =
Total start-up funds required
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Important Disclosures
*These tools and other information are copyrighted 2019 by The Small Business Company, Ltd. (“TSBC”) and used under license by TD
Bank, NA. This information has been prepared by TSBC for general informational purposes only. TSBC is solely responsible for the
content. Any opinions expressed herein belong to TSBC and do not necessarily reect the opinions of TD Bank, N.A. or any of its aliates,
directors, ocers or employees. These materials are not intended to provide legal, tax or accounting advice or to suggest that you engage
in any specic transaction. TD does not endorse or guarantee the accuracy of the information provided by TSBC, or any other third party
and the information does not necessarily represent TD’s business practices or experience. Neither TD nor TBSC makes any representation
or guarantee as to the accuracy and/or reliability of such information nor shall any of TD or TBSC or their respective employees be liable
for any loss or damages suered as a result of any use of such information. Please consult your own counsel, accountant or other advisor
regarding your specic situation. Any reliance upon any such information is solely and exclusively at your own risk.
Under no circumstances should any information contained in the materials presented be used or considered as an oer or commitment, or a
solicitation of an oer or commitment, to participate in any particular transaction or strategy or should it be considered legal or tax advice.
Banking and lending products and services, bank deposit products, and Treasury Management products and services for healthcare
providers and payers are provided by TD Bank, N.A., Member FDIC. Lending and leasing products and services, including card services
and merchant services, as well as certain other banking products and services, may require credit approval.
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