Calculate capital requirements
How much money do you need to start and keep going until your income covers your costs? Your capital requirement is the first number every lender or investor wants to see – and it decides whether you survive.
Calculate your start-up capital
Estimate how much capital you need for the launch and the start-up phase – including a cash reserve and a safety buffer.
Enter your figures to calculate how much capital you need.
The three components
Your capital requirement is made up of investments (e.g. equipment, devices, website), one-off incorporation and start-up costs, and a cash reserve that covers your running costs until the business pays for itself.
Don’t forget the cash reserve
The most common mistake: you plan the investments but forget the months in which income is still low. Plan a reserve that covers at least the first six to twelve months of fixed costs and private withdrawals.
Include a buffer
Things take longer and cost more than planned. A buffer of 10–20% on top of the calculated requirement protects you from nasty surprises and an early cash crisis.
Frequently asked questions
How large should the cash reserve be?
As a rule of thumb, at least six to twelve months of your fixed costs, including your private living costs, until your income is sustainable.
What counts towards the capital requirement?
Investments, one-off incorporation and start-up costs and the cash reserve for the start-up phase – plus a safety buffer.
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