Start a business calculator
The idea's the fun part. This shows the money side: what it takes to launch, when you'd break even, and how much cash gets you there — including paying yourself.
Costs
Sales
Your cash over the first 3 years
A simple planning model, not a forecast. It assumes steady growth, constant margin and costs, and ignores tax, VAT and payment terms. Speak to an accountant before committing money.
How much money do I need to start a business?
You need enough cash to cover your start-up costs plus the losses you make until monthly profit covers your fixed costs and your own pay. This free calculator finds your break-even sales, the month you would break even and the cash needed to get there, then checks it against your savings or funding.
Worked example
A business with £5,000 start-up costs, £1,200 a month fixed costs, paying the owner £1,500 a month, a 50% margin, £1,500 sales in month one growing 8% a month:
| Monthly sales needed to break even | £5,400 |
|---|---|
| Break-even month | Month 18 |
| Cash needed to get there | £25,587 |
| Funding available | £10,000 |
It breaks even around month 18 and needs about £25,587 of cash to get there. These are the calculator's starting figures — change them above for your own answer.
How does the start a business calculator work?
- Enter one-off start-up costs, monthly fixed costs and what you need to pay yourself.
- Set your gross margin — what you keep from each £1 of sales after the cost of products or materials.
- Enter sales in month one and how fast you expect them to grow each month.
- Break-even sales = (fixed costs + your pay) ÷ margin. We then run month by month for up to five years to find the break-even month and the lowest cash point.
- The cash you need is your start-up costs plus the losses until you are profitable, checked against the funding you have.
Start a business calculator questions
What does break-even mean?
The level of monthly sales where your gross profit — sales multiplied by your margin — covers your fixed costs and your own pay.
What is a good gross margin?
It depends on the business. Services are often high because there is little to buy in; retail and food are usually lower. Use the margin from your own pricing and supplier costs.
Does it include tax and VAT?
No. It is a simple planning model that leaves out tax, VAT and payment terms. Speak to an accountant before you commit money.
Where can I get help starting a business?
Start Up Loans, from the government-owned British Business Bank, offers loans and mentoring across the UK. In Northern Ireland, the Go For It programme offers free start-up support.
Sources and assumptions
Figures and rates last reviewed 9 October 2026. PocketSorted gives estimates and guidance, not regulated financial advice.