Startup Cost Calculator
Estimate your startup budget by industry, calculate burn rate and runway, and compare funding options — bootstrapping, angel investment, VC, SBA loans, and crowdfunding. Includes §195 startup cost deduction analysis.
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How to Use This Calculator
Startup Budget tab
Select your industry to pre-fill typical cost ranges, then choose your business structure (LLC, S-Corp, C-Corp, or Sole Proprietorship) and state of incorporation. Check the expense categories that apply to your business and adjust the dollar amounts. The calculator totals one-time vs recurring costs, computes your monthly operating cost, and shows your §195 startup cost deduction — how much you can write off immediately vs amortize over 180 months.
Burn Rate & Runway tab
Enter your monthly revenue, monthly expenses, and cash on hand. The calculator computes gross and net burn rate, runway in months, break-even month, and a 12-month cash flow projection with configurable revenue and expense growth rates. See exactly when you’ll run out of money — or reach profitability.
Funding Need tab
Input your total startup costs (from Tab 1 or manually), monthly burn rate, and desired runway. Compare funding sources: bootstrapping, angel investment, venture capital, SBA 7(a) loans, and crowdfunding. See equity dilution at various valuations, SBA loan payments, and a side-by-side comparison of pros and cons for each option.
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Every input is encoded in the URL. Click Share to send your exact scenario to a co-founder, advisor, or investor.
The Formula
Startup financial planning relies on three core formulas:
Runway (months) = Cash on Hand / Net Burn Rate
Total Funding Needed = Startup Costs + (Monthly Burn × Desired Runway) − Existing Savings
§195 Deduction: First $5,000 immediately deductible
(phased out dollar-for-dollar above $50,000 total)
Remaining startup costs amortized over 180 months (15 years)
Equity Dilution = Investment / (Pre-Money Valuation + Investment) × 100%
SBA Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1]
where P = principal, r = monthly rate, n = number of payments
The §195 deduction lets you write off the first $5,000 of startup costs in Year 1. But if your total startup costs exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar. At $55,000+, you amortize everything over 180 months. Organizational costs (§248) have a separate $5,000 deduction with the same phase-out rule.
For burn rate, gross burn is total monthly spending, while net burn subtracts revenue. Runway tells you how many months until cash hits zero at the current burn rate. Factor in growth rates for more realistic projections.
Example
Alex — launching a SaaS startup in Delaware
Alex is a solo founder building a B2B SaaS product. She incorporates as a Delaware C-Corp (for VC compatibility), works from home, and plans to hire her first employee in month 6. She has $80,000 in personal savings and expects to raise a seed round.
Startup Budget tab
Because total startup costs exceed $50,000, Alex’s immediate §195 deduction is reduced from $5,000 to $4,400. The remaining $44,200 is amortized at about $245/month over 15 years.
Burn Rate & Runway tab
At 15% monthly revenue growth, Alex reaches break-even by month 10. She has 13 months of runway — enough to prove traction before raising a seed round.
Funding Need tab
Alex needs roughly $79K in external funding. An angel round at a $1M pre-money valuation would cost her 7.3% equity — reasonable for a pre-revenue SaaS startup with a working MVP.