Have a brilliant business idea in mind? But not sure how much money will it take to bring your idea to life? Upwork's Free Startup Cost Calculator can help you estimate the cost required to set up a Startup business.
The Startup cost calculator helps to determine the costs that you’ll need to budget for starting a small business. The calculator will walk you through the process of identifying and determining your expenses, simplifying the process and making it less overwhelming. Our goal is to help you reduce the chances of omitting any important business expenses.
As you use the Startup calculator, you can add in additional expense fields and edit the costs, which ensures that the figures will be correct for your business. The calculator does all of the math for you. It’s a fast and simple process, and eliminates a lot of the research you’d otherwise have to do to determine costs.
Once you have those results, you’ll have a better, more detailed idea of how much money you’ll need to cover essential costs like accounting, licenses and permits, and legal fees for incorporation. Being able to see this figure in full upfront can help you to plan and budget, and it can also help you to decide if you might need to seek additional funding, such as a business loan, so that all of your expenses will be covered.
If you do pursue funding, having your Startup costs clearly defined can demonstrate your effective planning to your funders. These Startup expenses will also become an essential part of your business plan.
After you figure out your costs, head to Upwork to hire the right talent to help make your early stage business a success. Explore all of the services on Upwork that you'll eventually need as your business grows.
Calculating Startup costs involves adding together both one-time expenses. These include logo design, machinery, or equipment purchases, as well as ongoing expenses, like office supplies, website hosting, business insurance and employee salaries. It’s easy to accurately plan for fixed costs and recurring monthly expenses, like your lease, while variable costs like inventory and payroll costs are harder to estimate.
Adding all of these expenses together will give you your Startup expenses, and can help you to budget to start your business and to create a detailed and accurate business plan. You can use this information to make purchases for your business and to explore your Startup funding options.
Once your Startup is generating income, you can easily calculate your gross profit margin, which is the amount of cash you have left over after the costs associated with producing a product or providing a service.
First you’ll need to calculate your net sales and net income. Your net sales are your sales after you’ve subtracted discounts, and returns:
Net sales = gross sales – sales returns – allowances – discounts
Your net income is your revenue after you’ve subtracted expenses.
Total revenue –total expenses = net income
To calculate your profit, you will need to divide your net income by your net sales, and then multiply that figure by 100.
Common new business Startup costs for entrepreneurs include market research and product analysis, hiring and training employees, advertising, accounting fees, and LLC filing fees.
If you operated your business but haven’t received income yet, you can file your taxes and claim tax deductions for your Startup costs.
You can calculate your Startup gross burn rate, or the rate at which your business is losing money, by dividing the money in your bank account by your business’ monthly operating expenses.