How to use the startup capital requirement calculator
Opening a business takes two kinds of money: the setup costs that go out before the doors open, and the working capital that carries you until sales settle. Plenty of owners budget only the first kind and run dry three or four months in, so both belong in the same plan.
Setup costs here are the lease deposit, any goodwill paid to take over an existing location, build-out, equipment and fixtures, opening inventory, and licenses and pre-opening expenses. Working capital is your monthly operating cost multiplied by the number of months you want covered, so put everything that actually leaves the account each month into that figure: rent, payroll, utilities and materials. Choose the number of months conservatively, based on how long you expect to take to reach break-even.
The contingency rate is added on top of setup costs plus working capital, not carved out of them. It absorbs the unplanned items, such as construction overruns or a permit that takes longer than promised. The last line, the funding gap, is total capital required minus the cash you already have, so a negative figure means cash left over.
Frequently asked questions
There is no fixed answer, but allow more than your expected time to break-even, since revenue rarely ramps exactly as planned. In a seasonal trade, make sure the period covers at least one full slow season.
Leave that field blank or set it to 0. For a new build or a space with nothing paid to a prior tenant, dropping the line has no effect on any of the other figures.