Average Startup Costs by Industry
| Business Type | Typical Range |
|---|---|
| Online / SaaS | $500–$10,000 |
| Consulting | $1,000–$20,000 |
| Salon / Beauty | $50,000–$175,000 |
| Retail Store | $50,000–$300,000 |
| Restaurant | $175,000–$750,000 |
| Manufacturing | $200,000–$2M+ |
Funding Options
- Personal savings: Most common first source. Risk: personal financial exposure.
- SBA Microloan: Up to $50,000 for startups. Lower rates, longer terms.
- CDFI loans: Community development lenders for underserved entrepreneurs.
- Business credit cards: 0% intro APR for 12-18 months. Good for equipment.
- Crowdfunding: Kickstarter/Indiegogo for product businesses.
- Angel investors: For scalable businesses with equity upside.
Related Data
Explore small business lending data by state at CFPB HMDA. Check grant eligibility for startup funding at SBA Grants.
Disclaimer: These are rough estimates. Actual costs vary significantly by location, business model, and market conditions. Consult an accountant and SBA advisor before launching.
Startup Capital, Actually Measured
The Kauffman Foundation's Startup Activity Index and its 2022 Entrepreneurship Survey found median startup cost of $10,000-$30,000 for service businesses, $40,000-$80,000 for retail, and $100,000-$400,000 for restaurants or manufacturing. Only 5% of new businesses received venture capital; 65% were self-funded via savings, 14% via bank loans, and 9% via friends/family. The 'bootstrap norm' dominates real-world founding.
Category breakdown of typical startup costs (Kauffman + SBA data): equipment and inventory 35-50%, initial working capital 20-30%, legal/permits/registration 5-10%, marketing/branding 8-15%, insurance and deposits 5-10%. The single biggest miss among failed startups per SBA post-mortem data: under-budgeting operating capital for the first 6-12 months — 54% of failed founders cited 'ran out of cash before revenue caught up.'
Industry-specific fixed costs matter more than founders expect. Restaurant: equipment/buildout $150-$500/sqft, liquor license $2,500 (NY) to $300,000+ (FL quota markets). Trucking: truck ($50K-$180K) + insurance ($12K/yr) + DOT registration ($300-$1,000). E-commerce: domain/shopify ($300/yr) + inventory ($5K-$50K) + ads ($2K-$20K to test product-market fit). Professional services (consulting, coaching): often under $5K — mostly laptop, software, LLC filing, and marketing — which is why services dominate new-business formation.
Sources: Kauffman Entrepreneurship Survey 2022, SBA Office of Advocacy, IRS SOI business returns
Methodology & Assumptions
This calculator implements standard formulas drawn from primary-source authorities. Values are point-in-time estimates; consult a licensed professional for high-stakes decisions. See the per-input definitions and source citations below.
How this works
Computations are deterministic and run client-side — no inputs leave your
browser. Formulas are derived from
standard published formulas for the calculator's domain (mortgage,
taxes, energy, conversions, etc.). When the underlying agency publishes
updated rates or thresholds we refresh defaults and update the page's
lastmod timestamp.
| Input | Default | Source / authority |
|---|---|---|
| All inputs | Domain-typical defaults | Editorial methodology, CalcMesh 2026 |