HVAC Business Startup Cost & First-Year Cash Calculator

A new shop can have plenty of work and still run out of cash while revenue is ramping up. Put in what it costs to open, what it costs to stay open each month, and how you expect revenue to grow, and see your cash month by month for the first year, when a month first turns positive, and how much cash you need to start with.

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Example numbers — use your own. The starting values are placeholders so the form isn't empty. They are not industry averages, typical startup costs, or benchmarks. Get real local quotes for each line.

One-time costs to open

Van or truck: down payment or purchase ($) — placeholder What you pay up front. If you finance, put the monthly payment below. Tools, gauges, recovery machine, vacuum pump ($) — placeholder Starting parts stock ($) — placeholder Capacitors, contactors, motors, fittings, filters, refrigerant. Licensing, permits, and bond ($) — placeholder Exam and license fees plus any bond your state or city requires. Insurance down payment ($) — placeholder Software setup ($) — placeholder Website, logo, truck lettering ($) — placeholder Legal and accounting setup ($) — placeholder Entity filing, registered agent, accountant setup. Other one-time costs ($) — placeholder

Monthly fixed costs

Truck or van payment ($/month) — placeholder Insurance ($/month) — placeholder General liability, commercial auto, tools/equipment. Software ($/month) — placeholder Phone and internet ($/month) — placeholder Marketing ($/month) — placeholder Your own pay / owner draw ($/month) — placeholder What you need to take home to cover your own bills. Leaving it at $0 hides the real cost of starting. Fuel ($/month) — placeholder Other monthly costs ($/month) — placeholder

Revenue ramp — your assumptions

Revenue in month 1 ($) — your assumption What you expect to bill in your first full month. Revenue growth per month (%) — your assumption How much each month grows over the one before. Can be 0 or negative. Seasons are not modeled; see below. Gross margin (%) — your assumption Revenue minus parts, equipment, and any field labor, as a % of revenue. Must be under 100%. Safety buffer on top of the minimum cash (%) — your choice Extra cushion for slow weeks, a late-paying customer, or a truck repair.

Results

Total one-time cost —

Monthly burn (fixed costs) —

First month cash flow turns positive —

Month you earn back everything you put in —

Minimum cash needed (lowest point) —

Cash to start with, including your buffer —

First-year totals —

Cumulative cash at month 12 —

Month by month

Month	Revenue	Gross profit	Fixed costs	Net cash	Cumulative cash

What this means

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The math

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How it's worked out

One-time costs are paid before your first month ("month 0"), so your cash starts that far below zero.

Monthly burn = the sum of your monthly fixed costs, including your own pay.

Revenue in month m = month-1 revenue × (1 + growth %)^{m − 1}. Gross profit = revenue × gross margin %. Net cash for the month = gross profit − monthly burn.

Cumulative cash = −one-time costs + the running total of net cash. The deepest point it reaches is the minimum cash needed: start with less and you run out. Cash to start with = minimum cash needed × (1 + your buffer %).

Worked example

With the example numbers above (all placeholders, not typical costs):

One-time costs: $15,000 + $8,000 + $5,000 + $1,500 + $1,500 + $500 + $1,500 + $1,000 + $1,000 = $35,000.
Monthly burn: $700 + $600 + $250 + $150 + $1,500 + $4,000 + $600 + $300 = $8,100 a month.
Month 1: $8,000 revenue × 50% = $4,000 gross profit, so net cash is $4,000 − $8,100 = −$4,100.
Turning positive: growing 10% a month, gross profit first beats $8,100 in month 9 (about $8,574).
Lowest point: the end of month 8, about $54,056 below zero. With a 25% buffer, plan on about $67,571 to start.
Payback: at month 12 you are still about $46,663 behind, so you do not earn back what you put in within the first year.

Things this leaves out

Seasons. HVAC demand swings with the weather. A smooth growth % hides slow months. Run a cautious version with low growth, and use the slow-season calculator below.
Getting paid late. This treats revenue as cash in the month you bill it. Customers and warranty claims that pay later push your low point deeper.
Taxes and loan principal. Income and self-employment taxes, and any loan repayment beyond the payments you entered, are not included.
Hiring. Fixed costs stay flat for 12 months. Your first hire changes the picture; use the hire another tech calculator when you get there.

We don't quote a "typical" cost to start an HVAC business, because we haven't found a solid public source for one. It depends on your state, your truck, and your insurance quotes. Price each line with real local quotes. Owners compare real numbers in the anonymous Owner Numbers survey.

Related tools and guides

For the full tech-to-owner playbook, read How to Start an HVAC Business: Tech-to-Owner Playbook (2026). Once you're open, the HVAC slow-season cash reserve calculator works out how much to save for the slow months. To set a labor rate that covers the monthly burn above, use the HVAC break-even hourly rate calculator, and to price out the truck itself, try the HVAC service truck cost calculator.