CostPrism
Business Updated June 2026

Business Startup Cost Calculator

Calculate 2026 startup costs by business type — one-time launch expenses, monthly fixed costs, and how many months of runway you need before reaching break-even.

National avg: $30,000
Range: $500 – $500,000+
Used by 24,560 people

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What Affects the Cost?

1. One-Time Startup Costs by Type

Online business/SaaS: $5,000–$50,000 (domain, hosting, development, marketing). Service business (consulting, cleaning): $3,000–$25,000 (tools, insurance, marketing, licenses). Retail store: $50,000–$150,000+ (inventory, fixtures, lease deposit, build-out). Restaurant: $150,000–$400,000 (equipment, build-out, permits, initial inventory). Food truck: $50,000–$150,000 (truck, equipment, permits).

2. Monthly Fixed Costs

The biggest ongoing costs: rent ($1,500–$10,000+), payroll (varies widely), insurance ($200–$1,000), software subscriptions ($200–$1,000), marketing ($500–$5,000+), and loan payments. Restaurants and retail spend 25–35% of revenue on rent and labor combined. Online businesses can run on $1,000–$3,000/month fixed costs.

3. How Much Runway Do You Need?

Most businesses take 6–18 months to reach break-even. Financial advisors recommend 12–18 months of operating capital before launch. Rule of thumb: calculate monthly fixed costs × 12, then add one-time startup costs. That's your minimum capital requirement. Under-capitalization is the #1 reason small businesses fail — not lack of demand.

2026 Cost Reference Table

Type / Option Typical Cost Range
Cleaning service (home-based) $2,000 – $10,000 startup
Online store / E-commerce $5,000 – $30,000 startup
Consulting / Agency (home office) $5,000 – $25,000 startup
Food truck $50,000 – $150,000 startup
Retail store (small, 1,000 sqft) $50,000 – $150,000 startup
Restaurant (full-service) $175,000 – $450,000 startup

Frequently Asked Questions

It depends entirely on business type. A home-based service business (cleaning, consulting, tutoring) can start for $2,000–$10,000. An online store costs $5,000–$30,000. A retail store needs $50,000–$150,000+. A restaurant requires $175,000–$450,000+. Beyond startup costs, plan for 6–12 months of personal living expenses as a separate safety net.

First-year costs include: one-time startup expenses + 12 months of fixed operating costs + marketing investment + your own salary (often $0 in Year 1 for bootstrapped founders). Most successful small businesses need $15,000–$50,000 in accessible capital before they're reliably profitable. Always add a 20–30% contingency buffer to your estimate.

You can operate as a sole proprietor with no legal structure, but an LLC ($50–$500 state filing fee) provides personal liability protection. This means your personal assets are protected if the business is sued. Most accountants recommend forming an LLC before generating significant revenue. Use Bizee or LegalZoom to handle the paperwork for $0–$79 plus state filing fees.

Set Up Your Business the Right Way

Bizee handles LLC formation for $0 (you pay state fee only) and includes 1 year of registered agent free.

Form Your LLC with Bizee — $0 + State Fee QuickBooks — Financial Tracking from Day 1

Tips Before You Start

  • ✓ Start lean — test your business model with minimum viable investment before scaling
  • ✓ Plan for 6 months of personal living expenses on top of business startup costs
  • ✓ Home-based business models (cleaning, consulting, online) have 80–95% lower startup costs than retail
  • ✓ Franchise business costs include a franchise fee ($20K–$80K+) plus startup capital requirements
  • ✓ Many startup costs are tax-deductible in Year 1 — up to $5,000 under Section 195

Cost by State — 2026

Based on national average pricing adjusted for local labor and material costs.