Starting a business requires more than a great idea—it demands careful financial planning to ensure you can cover your costs and reach profitability. The first 12–18 months are critical: 82% of small businesses fail due to cash flow problems, not lack of demand.
Before you launch, you need clear answers to three fundamental questions: How much capital do I need? What do I need to charge to be profitable? And when will I break even? The calculators below help you build realistic financial projections so you can launch with confidence.
Real Examples: How Other Business Owners Used These Calculators
See how real businesses made data-driven decisions with figflows calculators
Step-by-step workflow
Calculate your break-even point
Start by modeling your fixed costs (rent, insurance, software, base salaries) and variable costs per unit or service. This tells you the minimum revenue you need to avoid losing money each month.
Estimate insurance premiums
Most commercial leases and client contracts require general liability insurance. Get a realistic premium estimate early so you can budget for it in your startup costs and monthly expenses.
Plan for self-employment tax
If you're operating as a sole proprietor or single-member LLC, you'll pay 15.3% self-employment tax on your net profit—in addition to income tax. Budget for quarterly estimated tax payments to avoid penalties.
Model financing options
If you need startup capital, compare loan payments across different amounts, rates, and terms. Make sure your projected revenue can cover debt service plus operating expenses before you borrow.
Typical startup cost ranges by business type
These are median first-year costs for common small business types. Your actual costs will vary based on location, industry, and business model.
Common mistakes to avoid
Underestimating time to profitability
Most businesses take 18–24 months to reach sustainable profitability. Budget for at least 12 months of operating expenses plus owner draw, or plan to keep your day job initially.
Pricing based on competitors instead of costs
If your break-even point requires pricing above market rates, you have a business model problem—not a pricing problem. Fix your cost structure or pivot before launch.
Skipping insurance to save money
One uninsured claim can bankrupt a startup. General liability insurance typically costs $500–$3,000/year—far less than the cost of a lawsuit or contract breach.
Key financial considerations
- → Start with break-even analysis to validate your pricing and understand how many sales you need to cover costs each month.
- → General liability insurance is often required by landlords and clients—estimate your first-year premium before signing a lease.
- → As a sole proprietor or LLC owner, you'll pay 15.3% self-employment tax on net profit—this is in addition to income tax.
- → If you need capital, model your loan payments early and ensure your break-even revenue can cover debt service plus operating expenses.
- → Build a 6-month cash reserve or line of credit before launch—unexpected expenses and slower-than-projected sales are the norm.