Business Viability Calculator

Estimate break-even point, monthly cashflow, and runway for a new business idea.

$

One-off costs to get started (equipment, fit-out, legal, etc.)

$

Projected average monthly revenue once trading

$

Rent, wages, utilities, insurance, supplies, etc.

%

Expected monthly growth rate in revenue

$

Available cash beyond startup costs for operating buffer

How It Works

Calculates monthly net cashflow (revenue minus expenses), applies the growth rate to project future revenue, and determines when cumulative profit covers startup costs. Also shows runway — how many months your cash reserve lasts if revenue falls short.

Frequently Asked Questions

What is a break-even point?

The break-even point is when your total revenue equals your total costs (startup + ongoing). After this point, the business is generating profit. Most small businesses in Australia take 1-3 years to break even.

How much cash reserve should a new business have?

The Australian Small Business and Family Enterprise Ombudsman recommends 3-6 months of operating expenses as a cash buffer. For seasonal businesses, 6-12 months is safer.

What are common startup costs in Australia?

Common costs include ABN/business registration ($0-$500), business insurance ($1,000-5,000/yr), equipment, website, marketing, fit-out, legal advice, accounting setup, and initial inventory. The ABS reports average startup costs of $10,000-$50,000 for small businesses.

Do I need an ABN to start a business?

You need an ABN if your annual turnover is $75,000 or more (or you're running an enterprise). You must register for GST if turnover hits $75,000. ABN registration is free at abr.gov.au.