How to Use the Startup Costs Calculator
Enter your one-off setup costs and expected monthly operating expenses. The calculator will show your total burn rate, the total funding required for your chosen working capital period, and the minimum monthly revenue you need to break even.
Company formation via Companies House costs just £13 online. Other typical one-off costs include website development, equipment, initial stock, solicitor fees and rental deposits. Monthly costs include wages, rent, insurance and subscriptions.
Startup Costs FAQs
How much does it cost to start a business in the UK in 2026?
The cost varies widely. A home-based online business can start for under £1,000, while a retail shop or trade business typically requires £5,000–£50,000+. Common one-off costs include company formation (£13–£50), a website (£500–£3,000), equipment, initial stock, legal fees and deposits. Use our calculator to build a tailored estimate for your specific business.
What startup costs are tax deductible in the UK?
HMRC allows pre-trading expenditure incurred in the 7 years before your business starts as a deduction in your first trading year. Deductible costs include professional fees, website development, equipment (via capital allowances), marketing, insurance and subscriptions. Company formation fees are not deductible. Always keep receipts and consult an accountant.
How much working capital do I need for a UK startup?
A common rule of thumb is 3–6 months of operating expenses as working capital. This covers the gap between paying suppliers and receiving customer payments. High-growth businesses or those with long payment terms (e.g. B2B invoicing) should target 6–12 months. Our calculator defaults to 6 months and shows your total funding requirement.
What is a typical startup burn rate in the UK?
Burn rate is the monthly cash your business spends. For a solopreneur, this might be £1,000–£3,000/month. A small team startup typically burns £5,000–£20,000/month. London-based startups with office space and staff commonly burn £20,000–£100,000+/month. Knowing your burn rate tells you your runway — how long until you run out of money.
How to fund a UK startup in 2026?
UK startup funding options include: personal savings (bootstrapping), Start Up Loans (government-backed, up to £25,000 at 6% fixed), friends and family, angel investors, SEIS/EIS investment, bank overdrafts or business loans, grants (Innovate UK, local LEPs), crowdfunding (Crowdcube, Seedrs) and revenue-based finance. Your choice depends on the amount needed and how much equity you're willing to give up.