Store Startup Viability Calculator
Before you sign the lease, know the number. Enter your build-out, inventory, rent, payroll, and a realistic sales estimate — see the capital you need, your daily minimum revenue, monthly break-even, profit reverse-target, and how long your cash lasts. Then spot the hidden costs that sink most store plans.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Step 1 — Startup Capital (one-time)
Step 2 — Monthly Operating Costs
Step 3 — Revenue & Targets
Feasibility Summary
Projection — base scenario
Benchmark Check
Occupancy below ~10% of revenue is a healthy retail benchmark.
* Pure arithmetic from your inputs — no tax rates or time-sensitive figures are hard-coded (employer-tax default is the 7.65% FICA share, which you can change). Hidden-cost ranges are educational estimates; verify rates for your state, city, and lease. Not financial advice. Print or save this report to take to a banker or partner.
The Costs Most Store Plans Forget
These are the line items that sink otherwise-sound store concepts. We model the big ones above — here is what else to watch.
Card & payment processing
1.5% – 3.5% of every sale
Charged on GROSS revenue, not profit. We already subtract it as a variable cost — but many first-time owners forget it compounds on every transaction, including tips and refunds.
Employer payroll tax
FICA 7.65% + SUTA + FUTA 0.6% + workers’ comp
The 7.65% is Social Security + Medicare you pay ON TOP of wages. Add state SUTA (often 0.6%–several %) and workers’ compensation (varies by role). Real employer cost is typically +15–25% on wages.
NNN lease load
Base rent + CAM + insurance + property tax
A "$3,500 rent" triple-net lease usually means $3,500 base PLUS common-area maintenance, building insurance, and property tax. Budget the full occupancy cost, not the headline number.
Inventory shrinkage
~1% – 2% of inventory value
Theft, damage, spoilage, and obsolescence quietly erode margin every month. Build a small shrinkage allowance into your COGS assumption.
Owner’s own labor
38% of small owners skip their own salary
If you must draw a living wage, that is a real cost — include it. If you go without pay early, understand you are subsidizing the business, not profiting.
Sales tax (pass-through, not profit)
Collected then remitted to the state
Not your cost, but a compliance and cash-float burden. Some states require a bond or frequent filing. Never spend collected sales tax.
Licenses, permits & renewals
Varies by state, county, and city
One-time fees PLUS annual renewals (business license, DBA, health permit, sign permit, seller’s permit). Check city hall — not just the state.
Marketplace / platform fees
8% – 15% if selling on Etsy / Amazon / delivery apps
If you sell through platforms, their commission sits on top of card fees and can dwarf your margin. Model it into variable cost if relevant.
Build-out overruns
Budget +10% – 20% contingency
Renovation almost always runs over. A $30k build-out realistically needs a $33k–$36k contingency line.
What This Calculator Does
Sizes Your Real Startup Capital
One-time costs plus a working-capital reserve of several months — the number banks and partners will ask for, not just the build-out.
Finds Your Daily Minimum Revenue
Monthly break-even divided by operating days. The sales floor you must clear every day just to survive.
Reverse-Solves Your Profit Target
Enter the monthly profit you want and see exactly the revenue required at your margin — no guessing.
Estimates Cash Runway
How many months your reserve lasts at the projected (and zero-revenue) case, so you know your survival window.
How to Plan a Store That Pays
- Total your one-time capital. Build-out, first inventory, equipment, licenses, signage — plus a 3+ month operating reserve.
- Build true monthly fixed cost. Rent + NNN, utilities, wages, employer payroll tax, your own draw, and amortized build-out.
- Set your variable cost ratio. COGS % plus payment processing % — everything that scales with each sale.
- Read your daily minimum revenue. If it feels unreachable for your location, rethink rent, price, or concept before committing.
- Stress-test with scenarios. Use conservative / base / optimistic revenue to see whether the plan survives a slow start.
- Catch the hidden costs. Card fees, employer tax, shrinkage, sales tax, permits — list them so nothing surprises you later.
Planning vs. Operating — Use Both
You are opening a store → use this tool
Feasibility, startup capital, daily minimum revenue, and profit reverse-target before you commit.
Open Startup ViabilityYou already run a store → use the Health Check
Enter your actuals to see whether the business is sustainable, where the gaps are, and what revenue fixes it.
Open Store Health CheckStore Startup Viability FAQs
Add your one-time costs (build-out, first inventory, equipment, licenses, signage) to a working-capital reserve of several months of operating cost. Our calculator totals both so you see the real capital required before day one — most owners under-estimate by skipping the reserve.
It is your monthly break-even revenue divided by your operating days. It tells you the sales floor you must clear every single day just to cover fixed costs. If that number feels unreachable for your location and traffic, the concept is at risk before you open.
A $30,000 renovation is a one-time hit, but it represents value consumed over years. Spreading it across the monthly P&L (over its useful life) gives a realistic picture of true monthly fixed cost — the same way a lender or buyer would view it. It is a planning amortization, not a tax depreciation figure.
Card processing (1.5–3.5% of sales), employer payroll tax on top of wages (FICA 7.65% plus SUTA/FUTA/workers’ comp), NNN lease load beyond base rent, inventory shrinkage (~1–2%), your own salary, sales-tax compliance, and platform/marketplace fees if you sell online. We surface these so they are not a surprise.
It builds on break-even math but goes further for store planning: it sizes startup capital, folds in build-out amortization and owner draw, reverse-solves the revenue needed for a profit target, and estimates cash runway. For a simpler view, try our Break-Even Calculator.
Authoritative References
- U.S. Small Business Administration — Calculate Your Startup Costs — the framework for one-time capital plus working-capital reserve used here.
- U.S. Small Business Administration — Break-Even Point — Fixed Costs ÷ (Price − Variable Costs) = Break-Even Units; we extend it to revenue and daily minimums.
- IRS — Small Business & Self-Employed — employer payroll tax (FICA 7.65%) and compliance references.
Estimates only. All figures come from your inputs; no tax rates or time-sensitive constants are hard-coded except clearly labeled defaults you can override. Hidden-cost ranges are educational estimates that vary by state, city, and lease — verify before deciding. Educational information, not financial advice. Confirm with a qualified accountant or lender.