Startup Funding Requirement Calculator

How the startup funding requirement calculator works

Upfront outlays add other one-time costs, opening inventory and deposits. Enter mutually exclusive amounts so inventory and deposits are not counted again in startup costs. Net monthly burn is operating payments less receipts. The reserve is positive monthly burn multiplied by a whole number of reserve months.

Contingency applies to the combined upfront outlays and positive-burn reserve. It rounds to cents and is added to the subtotal. Additional funding is max(0, total requirement − available funds). Entered money amounts round to cents before assembly; no return is imputed to the reserve or available funds.

A recurring monthly surplus does not reduce upfront need because the timing of its receipts is unknown. Reserve months can be zero. This model provides an undated planning allowance rather than a financing application, cash-flow schedule, valuation or guarantee that bills can be paid. Tax, financing fees, seasonal ramps and restrictions must be represented separately if relevant.

Worked example

Other startup outlays of 25,000, inventory 10,000 and deposits 5,000 total 40,000 upfront. Monthly payments of 10,000 less receipts of 4,000 give 6,000 burn; six reserve months add 36,000. A 10% contingency on 76,000 adds 7,600, giving 83,600 total requirement. With 20,000 available, additional funding is 63,600. Three reserve months reduce the requirement to 63,800.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• SBA: business planning and startup costs