Business Startup Cost Calculator — Australia 2026
What starting the business actually needs in the bank: one-time setup, the runway to carry monthly costs until it turns a profit, a safety buffer, and a contingency on top — with the split across setup, inventory, equipment, fitout and launch marketing.
Total capital is one-time costs plus runway plus buffer, then a contingency percentage on that subtotal.
| One-time | $15,000.00 |
|---|---|
| Runway | $96,000.00 |
| Buffer | $24,000.00 |
| Contingency | $13,500.00 |
| General setup | $15,000.00 |
|---|
How the startup costs works
Total capital is one-time costs plus runway plus buffer, then a contingency percentage on that subtotal. Runway is monthly operating costs times the months you expect to take to reach profitability — the number most first-time owners get wrong, because it is the money that keeps the doors open while revenue is still building, not the money that opens them. The buffer is extra months of the same costs held back for the thing you have not thought of; three months is the usual minimum. The contingency covers cost overruns on the one-time items, where 10% is optimistic and 20% is realistic for anything involving a fitout. On registration: an ABN is free through the Australian Business Register, a company costs a few hundred dollars to register with ASIC plus an annual review fee, GST registration is compulsory at $75,000 of turnover (and worth taking earlier if your customers are businesses claiming the credit), and workers compensation insurance is a state scheme you must hold from your first employee.
Formula: Capital = one-time + (monthly × months to profit) + (monthly × buffer months), then × (1 + contingency)
Where these figures come from
Business figures on this page are drawn from the Australian Taxation Office (business tax, GST, PAYG), Business.gov.au (the federal business registration hub), Fair Work (employer obligations), and ASIC (company and director rules).
- Company tax rate (25% / 30%) — ATO — Company tax rates.
- GST rules (10%) — ATO — GST.
- PAYG withholding & employer obligations — ATO — PAYG withholding.
- Business registration (ABN/ACN) — Business.gov.au.
- Employer pay & award obligations — Fair Work Ombudsman.
- Company & director rules — ASIC — Companies.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
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Online service business — $15k setup, $5k/mo, 9 months to profit ~$75,000 total capital needed
An online service business (consulting, freelancing, digital agency) with $15,000 one-time setup and $5,000/month operating costs, targeting profitability in 9 months: Setup $15k + 9-month runway $45k + 3-month buffer $15k = ~$75,000. This is a mid-range estimate for a home-based professional service.
| One-time setup | $15,000 |
|---|---|
| Monthly operating costs | $5,000/mo |
| 9-month runway | $45,000 |
| 3-month safety buffer | $15,000 |
| Total capital needed | ~$75,000 |
| Typical funding source | Personal savings + business loan |
- ABN registration Free — apply at abr.gov.au
- Business name registration $41 for 1yr, $95 for 3yr
- GST registration needed Once turnover exceeds $75k/yr
- Professional indemnity insurance $500–$2,000/yr depending on field
- Home office deduction 67c/hr or actual cost method via ATO
Retail shop — $80k setup, $20k/mo, 18 months to profit ~$500,000 total capital needed
A bricks-and-mortar retail store with $80,000 setup (fitout, equipment) and $20,000/month operating costs (rent, wages, stock), targeting profitability at 18 months: Setup $80k + inventory $50k + runway $360k + buffer $60k = ~$550,000.
| One-time setup (fitout etc.) | $80,000 |
|---|---|
| Initial inventory | $50,000 |
| Monthly costs | $20,000/mo (rent + wages + COGS) |
| 18-month runway | $360,000 |
| 3-month buffer | $60,000 |
| Total capital | ~$550,000 |
- Retail lease (typical term) 3–5 years + options
- Fitout landlord contribution Sometimes negotiable — ask
- Council permits Development approval may be needed
- Workers compensation Required as soon as you hire staff
- Retail failure rate ~40% of retail startups close in 3 years
Startup costs by business type — Australia 2026 $2k–$500k+ depending on type
Startup costs vary enormously by business type. The key variables are: whether you need a physical premises, staff, and stock. Online and home-based businesses have the lowest barriers. Bricks-and-mortar businesses require the most capital.
| Online/digital business | $2,000–$15,000 |
|---|---|
| Home-based service (trade, consult) | $5,000–$30,000 |
| Office-based service | $20,000–$80,000 |
| Retail shop | $50,000–$250,000 |
| Cafe or restaurant | $100,000–$400,000 |
| Manufacturing / food production | $150,000–$1,000,000+ |
- Franchise $20,000–$500,000+ (franchise fee + setup)
- Online marketplace seller $500–$5,000 to start
- Mobile services (cleaners, trades) $5,000–$30,000 (vehicle, equipment)
- Childcare centre $500,000–$1,500,000+ (heavily regulated)
- Best resource business.gov.au/planning/new-businesses
How to fund your Australian startup Savings, loans, grants, investors
Most Australian small business startups are funded from personal savings (bootstrapping) — this is the most common and simplest approach. External funding (loans, investors, grants) becomes more relevant for larger startups or those with high growth ambitions.
| Personal savings (bootstrapping) | Most common — no debt, no dilution |
|---|---|
| Business bank loan | Secured: 7–11% · Unsecured: 12–25%+ |
| Family and friends | Common — but document everything |
| Government grants | grants.gov.au — highly competitive |
| Angel investors | Equity for capital — give up ownership |
| Accelerators (SPARK, Startmate) | Equity + mentoring + small capital |
- Export Market Development Grant (EMDG) Up to $770k for export costs
- R&D Tax Incentive 43.5% cash refund on eligible R&D
- SBFE loan guarantees Government-backed lower-rate loans
- Equity crowdfunding Via licensed platforms (Birchal, Equitise)
- Revenue-based finance Repay as % of monthly revenue
Worked examples
| Inputs | Total Capital Needed | Note |
|---|---|---|
| 15,000 setup, 8,000 a month, twelve months to profit | $148,500 | 148,500 all in |
| Six months to profit instead of twelve | $95,700 | reaching profit sooner takes 52,800 less capital |
| A fitout and stock on top | $258,000 | the one-time half now dominates |
The sources behind this calculator
- Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
- US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardised
- Australian Securities and Investments Commission — the Australian corporate regulator
Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.