Garbage Collection Startup Costs: $572K CAPEX Planning Guide

Estimate Startup Costs with Calculator

Startup CAPEX Calculator

Estimates capitalized startup assets only for a garbage collection launch, so you can size the cash needed before operations begin.

LeanBaseFull

Truck CAPEXUsed-vs-new trucks, lift systems, and body spec.

$

Container CAPEXBins, carts, dumpsters, and roll-off containers.

$

Depot CAPEXDepot tools, office setup, safety gear, and shop equipment.

$

Technology CAPEXPlatform build, GPS hardware, IT hardware, and software setup.

$

Launch-Month Asset Cash NeedAll capitalized startup assets needed before operations start.

$

Contingency ReserveCovers small overruns in truck spec, setup, and launch assets.

10%

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What this excludes This calculator covers capitalized startup assets only. It excludes working capital, payroll runway, fuel float, tipping fee reserve, debt service, loan payments, deposits, inventory runway, marketing runway, and other recurring operating expenses.

Calculate Fuding Needs

Startup Cost Summary

This table separates startup capex from excluded working capital for a garbage collection business.

LowBaseHigh

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Highlighted CAPEX$560,000Base planning example

Excluded cash needs$22,000Outside CAPEX total

Funding need$582,000CAPEX + excluded cash needs

Cost Category	Base Estimate	Main Cost Driver	CAPEX Calculator
Waste Collection Trucks	$400,000	Two truck purchases and prep	Yes
Recycling Bins & Carts (Initial Stock)	$40,000	Initial carts and bins stock	Yes
Online Platform Development	$80,000	Platform build and launch setup	Yes
Depot Equipment & Tools	$25,000	Depot setup and tool needs	Yes
Office Setup & Furnishings	$15,000	Office fit-out and furniture	Yes
Working Capital Reserve	$22,000	Month 17 breakeven gap and early losses	No

Compare 3 Startup Cost Scenarios

Startup cost scenarios

Costs rise fast as the launch moves from one truck to a local route, to the source model, to a larger fleet with more bins, staff, depot space, and working capital.

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Lean, Base, and Full launch cost comparison for Garbage Collection

Scenario	Lean LaunchOwner-operator	Base LaunchRoute-based	Full LaunchCommercial-ready
Launch model	A one-truck local-route launch keeps the model lean and relies on tight route density to stay efficient.	This is the source model with two trucks and a balanced route-based launch plan.	This version adds a larger fleet and more container-heavy service for municipal or commercial readiness.
Typical setup	This setup uses limited carts, outsourced maintenance, and a smaller depot footprint, but it carries higher downtime risk.	It includes two $200,000 trucks, $40,000 of initial carts and bins, $25,000 of depot tools, $80,000 of platform development, $12,000 of IT setup, and $15,000 of office setup.	It needs more staff, more containers, more depot capacity, stronger insurance coverage, and more working capital.
Cost drivers	One truck limited carts and bins outsourced maintenance smaller depot needs basic IT setup	Two trucks carts and bins depot tools platform build IT and office setup	Larger fleet container inventory extra staff depot capacity higher insurance and working capital
Planning rangeCAPEX only	$250,000 - $400,000Lower cash need	$550,000 - $600,000Model benchmark	$800,000 - $1,100,000Higher cash need
Best fit	Best for an owner-operator who wants a route-based launch and can keep service simple.	Best for a route-based operator that wants the model's Month 17 breakeven path without stretching into full municipal scale.	Best for a commercial-ready launch that can support higher route density and handle a tougher Month 17 breakeven risk.

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Planning note: These scenario bands are planning assumptions built from the model, not exact vendor quotes. Actual bids, route density, and local compliance needs can move them up or down.

What are the hidden costs of starting a garbage collection business?

If you’re starting Garbage Collection, the real hidden cost is cash timing: disposal fees can run 140% of Year 1 revenue, fuel 90%, variable vehicle maintenance 35%, and payment processing 15%, before you count insurance deposits, permit delays, landfill or transfer station setup, truck downtime, bad debt, and payroll timing. Add $13,850 in monthly fixed overhead, $492,000 in Year 1 payroll, and $150,000 in Year 1 marketing, and Year 1 EBITDA lands at -$292,000; breakeven doesn’t hit until Month 17. So the reserve has to fund route ramp-up, not just trucks, and the cash math sits next to How Much Does The Owner Of Garbage Collection Business Typically Make?.

How much does a garbage truck cost for a startup?

For Garbage Collection, the truck cost is the biggest CAPEX item, but it is not the full startup budget. This model assumes 2 waste collection trucks at $200,000 each, or $400,000 total, before deposits, inspections, branding, registration, and maintenance readiness. The right truck depends on the service model: residential routes need cart capacity and repeat density, commercial work needs dumpster handling, and roll-off work needs containers and disposal access, and these are planning assumptions not dealer quotes.

How do you fund a garbage collection business?

If you’re funding Garbage Collection, the pitch has to show how the business covers $572,000 in start-up spend and survives the early cash burn. The model already points to a tough first year: -$292,000 Year 1 EBITDA and Month 17 breakeven, so lenders and investors will want a cash plan, not just a growth story.

Garbage Collection Core Five Startup Costs

Collection Vehicles Startup Expense

Permits, Licensing, and Disposal Access Startup Expense

Carts, Dumpsters, and Customer Equipment Startup Expense

Depot, Parking, and Maintenance Base Startup Expense

Insurance, Safety, Staffing, and Route Technology Startup Expense