Build a complete picture of what your business will cost to launch. Enter one-time setup costs, working capital requirements and monthly fixed overheads to see total cash needed, runway and how long until break-even.
| Gross Margin | Monthly Revenue Needed | Annual Revenue Needed | Daily Sales Target |
|---|
Underestimating startup costs is the most common reason UK businesses fail in their first year. Not because the business model is wrong, but because the founder ran out of cash before reaching break-even. This calculator forces comprehensive thinking — one-time setup costs, monthly fixed overheads, working capital buffer — and shows the true total before you commit a penny.
These are paid once to get the business operational: company registration (£12–£50 on Companies House), website and branding (£500–£10,000), equipment, initial inventory, premises deposit and fit-out, accounting software setup. These are often well-planned but frequently underestimated by 30–50%.
The cash needed to keep the business running from launch until revenue covers costs. If monthly fixed costs are £4,000 and you need 6 months to reach break-even, you need £24,000 of working capital beyond your setup costs. Most first-time founders forget this entirely. Working capital is not an expense — it is a reserve that keeps the business alive.
No startup cost estimate is ever accurate. Equipment costs more, the website takes longer, the accountant charges more than quoted, the first marketing campaign underperforms. Add a minimum 20% contingency to every startup cost estimate as a rule. If your estimate is £25,000, budget £30,000. The contingency that feels unnecessary before launch almost always gets spent.
| Business Type | Typical Setup Cost | Monthly Overheads | Total to Launch |
|---|---|---|---|
| Freelance / Consulting | £500–£2,000 | £500–£1,500 | £3,500–£11,000 |
| E-commerce (dropship) | £1,000–£5,000 | £1,000–£3,000 | £7,000–£23,000 |
| E-commerce (own stock) | £5,000–£30,000 | £2,000–£8,000 | £17,000–£78,000 |
| SaaS / App | £10,000–£100,000 | £3,000–£20,000 | £28,000–£220,000 |
| Retail shop | £20,000–£80,000 | £5,000–£20,000 | £50,000–£200,000 |
| Restaurant / Cafe | £50,000–£200,000 | £10,000–£40,000 | £110,000–£440,000 |
It varies enormously by sector. A freelance or consulting business can start for under £1,000. An e-commerce business needs £5,000–£30,000. A physical retail business needs £30,000–£100,000+. Beyond setup costs, you need working capital to cover ongoing costs until the business reaches break-even — typically 6–18 months of monthly overhead costs. Our calculator builds the full picture from your specific inputs.
Technically yes — a UK limited company can be incorporated on Companies House for £12–£50 with no minimum share capital requirement. However, you need enough cash to actually operate the business until it generates revenue. For any business with overheads, having less than 6 months of working capital reserve before launch significantly increases failure risk.
HMRC allows deduction of pre-trading expenses incurred up to 7 years before the business started trading, if those costs would have been allowable business expenses during trading. This includes legal fees, website development, equipment (via capital allowances), software and professional fees. Keep receipts for everything from day one, even before formal launch.