List what you need before launch
Capture the equipment, setup, professional services, marketing and other spending required before the business can begin operating.
Startup cost calculator UK
Find out what it could really cost to start your business.
Polar Startup Cost Builder helps you calculate one-off business startup costs, monthly running costs and the cash you may need before launch. Build a startup budget around your actual business instead of relying on somebody else’s average.
One-off startup costs
Monthly running costs
Working capital and cash buffer
Inside Polar · Startup Cost Builder
Example
STARTUP COST BUILDER
What will it cost to get started?
Add the costs your particular business needs before opening the doors.
CURRENT STARTUP PICTURE
Northway Services
£8,420
One-off setup costs
£2,180
Monthly running costs
£14,960
Suggested launch cash
Tools & equipment
£3,250
Vehicle setup
£2,100
Insurance
£680
Website & identity
£540
Launch marketing
£750
Licences & training
£1,100
One-off startup costs
£8,420
Polar suggestion:
consider keeping at least three months of expected running costs
available rather than planning to launch with only enough cash to open.
Free startup cost calculator · No account needed
Work out how much cash you need to start.
Add your one-off costs, a contingency and a reserve for running costs. This calculator works in your browser and does not send your figures to Polar.
What should go into your startup budget?
Include deposits, tools, initial stock, setup fees and launch spending as one-off costs. Include rent, software, insurance, utilities and other continuing commitments in monthly costs. Count each expense once. Include VAT where you expect to pay it and cannot recover it; allow for the timing of any recovery separately.
These starter figures are an example, not typical UK prices. This simple estimate assumes no income offsets the reserve. It does not model tax, borrowing repayments, stock replacement or payment delays unless you include them. Add a separate household budget if the business needs to support you before sales arrive.
Business startup costs
Don’t ask what the average business costs to start. Work out what yours will cost.
The cost of starting a business can vary enormously. A home-based consultancy may need very little equipment, while a trade, shop, hospitality business or stock-based company could need considerably more. Polar helps you build your own startup cost estimate category by category.
Add the monthly running costs
Work out what the business could need every month for software, insurance, premises, vehicles, marketing and everyday overheads.
See the cash needed to launch
Combine startup spending with a sensible operating buffer so the business is not planned around reaching its first customer with £0 left.
How much does it cost to start a business in the UK?
There is no useful single answer — because every business starts differently.
Startup costs depend on what you sell, where you work, whether you need premises, vehicles, equipment or stock, and how much cash the business needs while sales are still developing. A useful startup cost calculator therefore starts with the business itself.
Registration & setup
Company formation, professional support and other early setup costs.
Tools & equipment
Machinery, tools, computers, phones and equipment needed to do the work.
Premises
Deposits, rent, fit-out, furniture, utilities and other property costs.
Stock & materials
Opening inventory, raw materials and consumables required before sales begin.
Insurance
Relevant business insurance and cover needed before trading.
Website & software
Website, domain, email, software subscriptions and digital tools.
Marketing
Branding, signs, advertising, printed material and launch campaigns.
Training & qualifications
Courses, certificates and professional requirements needed to trade.
Licences & permissions
Relevant licences, registrations and industry permissions.
Vehicles & transport
Vehicle deposits, purchase costs, branding and initial transport setup.
Professional fees
Accountancy, legal advice and specialist professional support.
Everyday startup extras
Small spending that is easily forgotten but can quickly add up.
Startup expenses calculator
Separate the cost of opening the business from the cost of keeping it open.
One of the easiest startup budgeting mistakes is calculating what it costs to launch but forgetting what happens during the following month.
One-off startup costs
What do you need to get ready?
These are costs that may happen once, or primarily during the setup stage.
- Equipment purchases
- Premises deposit or fit-out
- Initial stock
- Business registration
- Website and brand setup
- Initial training
- Vehicle setup
- Launch marketing
Monthly running costs
What will the business keep spending?
These costs may continue whether or not the first month delivers the sales you hoped for.
- Rent and premises costs
- Software subscriptions
- Insurance payments
- Vehicle costs
- Phone and internet
- Regular marketing
- Staff costs
- Professional services
Hidden startup costs
The dangerous costs are often the ones you forgot to put in the plan.
Startup budgets can look comfortable until several smaller costs appear at the same time. Polar encourages you to think beyond the obvious big purchases.
Easy to overlook. Still has to be paid.
These costs may not apply to every business, but they are worth checking before deciding how much money is needed to launch.
Deposits
Premises, equipment hire, utilities or other services may require money upfront.
Card and payment fees
Taking payments may involve hardware, transaction charges or monthly fees.
Delivery and carriage
Stock and equipment may cost more once shipping and delivery are included.
Protective equipment
Uniform, workwear or safety equipment can create an early cash requirement.
Repairs and replacements
Used equipment and vehicles may require spending sooner than planned.
Contingency
A startup rarely follows the spreadsheet perfectly, so some breathing room matters.
Small business startup costs example
What could a startup cost calculation actually look like?
Here is a simple example for a fictional local service business. Your costs may be completely different — which is exactly why Polar builds the calculation around your business.
Northway Services
A fictional local property-maintenance startup requiring equipment, transport, insurance, a website and enough cash to operate while initial customers are being won.
Important: these figures are examples only. Polar’s
job is to help you replace them with realistic figures for your own business.
Example startup budget
Tools & equipment
£3,250
Vehicle setup
£2,100
Insurance & registrations
£680
Website, email & identity
£540
Launch marketing
£750
Training & qualifications
£1,100
One-off setup costs
£8,420
3 months running-cost buffer
£6,540
Indicative launch cash
£14,960
Working capital for a startup
Opening the doors is not the same as surviving the first few months.
A startup may have to pay bills before customers have paid the business. Working capital gives the business some room to operate while revenue is developing and cash is moving through the customer journey.
Pay the bills while sales grow
Consider how long the business may need to operate before regular sales cover everyday costs.
Allow for slow customer payments
A sale does not always mean immediate cash, particularly when invoices are paid later.
Keep a contingency
Unexpected spending is much easier to handle when every pound has not already been allocated.
Startup budget calculator connected to your plan
Once you know the startup cost, Polar helps you work out what it means.
Startup Cost Builder does not have to become another isolated calculator. The figures can feed into the wider financial and funding journey.
Business Plan
→
Startup Cost Builder
→
Startup Budget Planner
→
Funding Centre
→
Cash-Flow Forecast
→
Break-Even Builder
From startup costs to financial planning
The cost of starting is only the first money question.
Once you know roughly what the business needs to launch, you can begin testing whether the wider financial plan makes sense.
How will you fund it?
Compare the cash required with your own available funds and any external funding you may need.
When might you break even?
Consider how many sales may be needed before ongoing income covers ongoing costs.
Will cash run out first?
Cash flow can become tight even when the business looks profitable on paper.
Startup costs for funding applications
If you need funding, be able to explain exactly what the money is for.
A clear startup cost breakdown can help you explain how much money is required, where it will be spent and what additional cash the business may need while trading begins.
Funding requirement
Understand the gap between the cash required and the money you can put into the business yourself.
Use of funds
Show where the startup money is expected to go instead of requesting an unexplained round figure.
Financial evidence
Connect startup spending with the forecasts and assumptions supporting the wider business plan.
Startup cost checklist
Before deciding what you need to start, check the whole business.
Use these categories as a starting checklist. Not every business will need all of them, and some businesses will have specialist costs not shown here.
Business setup
Registration, professional fees, licences, permissions and initial admin.
Equipment
Tools, machinery, phones, computers and specialist equipment.
Premises
Deposits, rent, fit-out, storage, utilities and furnishings.
Stock
Opening stock, raw materials, packaging and other inventory.
Vehicles
Purchase, lease deposits, insurance, tax, fuel and branding.
Insurance
Relevant cover required to protect the business and meet obligations.
Digital setup
Website, domain, email, phone and business software.
Sales & marketing
Branding, advertising, signs, content and customer acquisition activity.
Cash reserve
Money available to cover running costs and unexpected spending during launch.
Startup cost calculator FAQs
Questions about calculating business startup costs.
How much does it cost to start a business in the UK?
There is no single figure that applies to every business. Startup costs depend on the type of business, equipment, premises, stock, vehicles, insurance, software, marketing and working capital required. Polar helps you calculate the costs for your particular business.
What are startup costs?
Startup costs are the expenses involved in preparing a new business to begin trading. They can include setup fees, equipment, stock, premises, insurance, marketing, software, training and other early spending.
What should I include in a startup cost calculator?
Consider both one-off setup costs and ongoing monthly costs. Useful categories include equipment, premises, stock, insurance, vehicles, website and software, marketing, licences, training, professional fees and a cash reserve.
What is the difference between startup costs and running costs?
Startup costs are mainly incurred while preparing the business to launch. Running costs are the ongoing expenses required to keep operating, such as rent, software, insurance, wages, fuel and marketing.
Should I include a cash buffer in my startup budget?
It can be sensible to consider a buffer because the business may have bills to pay before sales and customer payments become consistent. The appropriate amount will depend on the business and its circumstances.
Can Polar help me calculate startup funding needs?
Polar can help organise the expected startup costs and running costs so you can compare the cash requirement with available funds and identify a potential funding gap.
Can startup costs be used in my business plan?
Yes. Startup cost information can form an important part of the financial section of a business plan and help explain how much money the business needs before launch.
Is Startup Cost Builder the same as a startup budget?
They are closely related. Startup Cost Builder helps identify the costs, while a startup budget brings those costs together with available money and wider financial planning.
Polar Startup Cost Builder
Know what the business needs before the bills start arriving.
Calculate one-off startup costs, monthly running costs and the cash buffer your business may need — then connect the numbers to your budget, funding plan, cash-flow forecast and business plan.