Startup Cost Calculator

Legal and administrative costs are often the first expenses new founders encounter. At minimum, you will need to form a legal entity (LLC or corporation) which costs $500-$2,000 depending on your state and structure. Additional legal costs include trademark registration ($350-$1,000), business insurance ($100-$300/month), and potentially legal counsel for contracts and agreements.

Technology costs are typically the largest expense category for tech startups. This includes your MVP or product development ($5,000-$50,000+), hosting and infrastructure ($50-$500/month), domain registration ($15/year), and security certificates. Using a fixed-price MVP service like RocketMVP ($3,999) can significantly reduce this category.

Marketing expenses include your initial branding (logo, website design), content creation, and customer acquisition costs. Many bootstrapped startups minimize marketing spend initially by focusing on organic channels like content marketing, social media, and direct outreach.

Team costs vary the most based on your situation. A solo founder or co-founding team working for equity has $0 in payroll, while hiring even one employee adds $5,000-$15,000/month depending on role and location. This is often the deciding factor in how much runway you need.

SaaS startups typically have moderate upfront costs focused on product development, followed by ongoing hosting and tool expenses. A bootstrapped SaaS founder can launch for $10,000-$20,000 by building an MVP with limited features and growing organically.

E-commerce businesses have variable costs depending on your inventory model. Dropshipping requires minimal upfront investment, while holding inventory requires significant capital. Marketing costs tend to be higher due to the competitive nature of online retail.

Marketplace platforms are among the most expensive startups to launch because you need to build infrastructure for two-sided transactions and often need to subsidize one side of the market initially. Plan for $50,000-$150,000 in the first year for a serious marketplace attempt.

Service businesses (agencies, consulting) are the cheapest to start because your primary asset is your expertise. Many consultants launch with just a laptop, website, and basic tools—under $5,000 total.

Your burn rate is the amount of money your startup spends each month. This includes all recurring expenses: hosting, tools, salaries, rent, marketing, and anything else that costs money on an ongoing basis. Understanding your burn rate is essential for planning how long your funding will last.

Runway is how long your startup can operate before running out of money. The formula is simple: Runway = Cash Available / Monthly Burn Rate. If you have $60,000 and burn $5,000/month, you have 12 months of runway.

Most experts recommend maintaining 12-18 months of runway to give yourself enough time to hit milestones and raise additional funding if needed. For bootstrapped startups, 6-12 months is more common, with the expectation of generating revenue to extend runway.

Our startup cost calculator helps you calculate both your monthly burn rate and the total runway you will need based on your funding stage. This information is crucial whether you are planning to bootstrap, raise angel investment, or pursue venture capital.

The key insight is that reducing burn rate is often more valuable than raising more money. Cutting your burn from $10,000 to $5,000 per month doubles your runway without any fundraising. This is why lean startup methodology emphasizes minimizing expenses until you achieve product-market fit.

Reducing startup costs is not about being cheap— it is about being strategic with limited resources. Every dollar you save extends your runway and reduces the amount you need to raise or earn before becoming sustainable.

The most impactful way to reduce costs is to validate your idea before building. Talk to potential customers, create landing pages, and run small experiments before investing in development. Many founders waste thousands on products nobody wants.

Fixed-price development is another powerful cost-reduction strategy. Instead of hiring developers at $100-$200/hour with uncertain timelines, services like RocketMVP offer fixed-price MVP packages starting at $3,999. You know exactly what you will pay before development begins.

Finally, remember that every expense should have an ROI. Before spending money, ask: "How will this help me acquire customers or build my product?" If the answer is unclear, delay the expense until you have more clarity about your business.

Understanding how to fund your startup is just as important as knowing your costs. There are several paths to financing your venture, each with different implications for ownership, control, and growth trajectory.

Bootstrapping means funding your startup from personal savings or revenue from early customers. This is the most common approach and offers maximum control and ownership. Most successful bootstrapped startups start with $5,000-$20,000 in personal funds and grow from revenue.

Friends and family rounds typically raise $25,000-$150,000 from people who know and trust you. This capital usually comes with favorable terms but can strain personal relationships if the startup fails.

Angel investors are wealthy individuals who invest in early-stage startups, typically $25,000-$500,000. Angels often provide mentorship and connections in addition to capital. They expect significant equity (10-25%) and the potential for large returns.

Venture capital is appropriate for startups with massive market potential and ambitions for rapid growth. Seed rounds typically range from $500,000-$3,000,000 and require a Delaware C-Corp structure. VCs expect you to pursue a path to becoming a billion-dollar company.

For most founders, the best approach is to start bootstrapped and pursue funding only if your business model requires it. Many successful companies (Mailchimp, Basecamp, GitHub pre-acquisition) were built entirely without venture capital.