How Much It Costs To Open A Thrift Store: $875K CAPEX
The researched thrift store startup cost in this model is $87,500 in one-time CAPEX, including a $35,000 buildout, $15,000 fixtures, $8,000 purchased initial inventory, $4,000 POS setup, $2,500 security installation, $3,000 website, and a $20,000 used delivery van That is not the full funding need You still need cash for lease deposits, pre-opening payroll, insurance binders, launch marketing, and working capital while sales ramp The model shows negative EBITDA of -$204,000 in Year 1 and breakeven in Month 39, so funding should cover more than the opening checklist
Estimate Startup Costs with Calculator
Startup CAPEX Calculator
Estimates one-time capitalized startup assets for a thrift store, not operating cash needs.
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Scope note Excludes inventory, payroll runway, deposits, debt service, working capital, rent reserve, marketing, software subscriptions, payment processing, insurance premiums, and any later delivery-vehicle purchase. This calculator covers only one-time capitalized startup assets.
Calculate Fuding Needs
Startup cost summary
This table separates modeled startup CAPEX from excluded launch cash needs for a thrift store.
Highlighted CAPEX$82,000Base planning example
Excluded cash needs$286,000Outside CAPEX total
Funding need$368,000CAPEX + excluded cash needs
Cost Category
Base Estimate
Main Cost Driver
CAPEX Calculator
Store Build-out & Renovation
$35,000
Leasehold work and contractor scope
Yes
Delivery Van (Used)
$20,000
Used vehicle price and prep
Yes
Retail Fixtures & Displays
$15,000
Racks, shelving, and display mix
Yes
Initial Inventory (Purchased)
$8,000
Starting stock buy size
Yes
POS Hardware & Software Setup
$4,000
Checkout hardware and setup scope
Yes
Operating Reserve
$286,000
Monthly fixed costs and Year 1 payroll runway
No
What does the CAPEX tab show?
The Thrift Store Financial Model Template shows CAPEX, startup costs, launch timing, working capital, and depreciation/amortization—review assumptions now.
Key screenshot highlights
$87,500 CAPEX total
10% visitor conversion
Month 39 breakeven
Compare 3 Startup Cost Scenarios
Startup cost scenarios
Lean, Base, and Full setups change cost mostly through buildout, fixtures, inventory mix, staffing, and pickup logistics. The base case matches the model at $87,500 CAPEX and breakeven in Month 39.
Lean, Base, and Full launch cost comparison
Scenario
Lean LaunchLow cash load
Base LaunchModel match
Full LaunchHigher lift
Launch model
Small neighborhood shop with a lighter opening spend and owner-heavy staffing.
Standard launch that matches the model at $87,500 CAPEX and breakeven in Month 39.
Larger launch that adds furniture space, broader pickup reach, and more working capital.
Typical setup
Fewer fixtures, donated-heavy inventory, no delivery van, and limited technology.
Uses the modeled buildout, inventory, POS, security, website, and delivery van.
Uses stronger displays, more staff, a bigger furniture mix, and wider logistics support.
Cost drivers
Smaller buildout
fewer fixtures
donated inventory
no van
owner-led labor
Buildout
fixtures
purchased inventory
POS setup
delivery van
Larger buildout
furniture space
stronger displays
more staff
pickup logistics
Planning rangeCAPEX only
$45,000 - $70,000Lower spend
$87,500Base case
$110,000 - $160,000High spend
Best fit
Founders testing one neighborhood store with tight cash and a hands-on owner.
Operators who want the modeled setup and can fund the full base launch.
Teams with more cash, more floor space, and room for higher reserve pressure.
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Planning note: Scenario ranges are researched planning assumptions built from the model inputs, not vendor quotes or exact bids.
How to fund a thrift store startup?
If you’re funding a Thrift Store, the ask has to line up with the plan: $87,500 CAPEX, $5,820 monthly fixed costs, $176,000 Year 1 payroll, and Month 39 breakeven. Show the traffic base too: 60 Monday visitors, 100 Friday, 180 Saturday, and 120 Sunday, with 10% visitor-to-buyer conversion and 25% repeat customers in Year 1.
Funding ask basics
$87,500 startup buildout
$5,820 monthly fixed costs
$176,000 Year 1 payroll
Month 39 breakeven target
Model proof points
Map monthly cash burn
Link use of funds
Show traffic by weekday
State payback timing clearly
Use the model to tie funding to ramp, not just opening costs. A lender, grant maker, or nonprofit backer will want proof that visitor traffic, 10% conversion, and 25% repeat buying can cover fixed burn on schedule.
What they will ask
Startup costs by line item
Use of funds by category
Working capital runway
Revenue assumptions by month
What to show next
Cash burn versus funding
Operating ramp by month
Breakeven path to Month 39
Payback on each dollar raised
Hidden costs of starting a thrift store
If you're opening a Thrift Store, the hidden cash need is bigger than the fixture quote. Treat rent before opening, utility deposits, insurance binder, permits, training, and payroll before the first sale as pre-opening expenses or working capital—not CAPEX—and note that How Much Does The Owner Make From A Thrift Store Business? shows $5,820 in monthly fixed costs plus $176,000 in Year 1 payroll. The model also shows -$204,000 EBITDA in Year 1, so cash reserve matters more than the buildout quote.
Before Opening
Rent before first sale
Refundable lease deposit and utility deposits
Sign permit, registration, sales tax permit
Staff training and payroll before launch
Early Cash Burn
Cleaning, repairs, hangers, tags, bags
Shrinkage and damaged goods
Slow early sales hit cash fast
$5,820 monthly fixed costs add up quickly
How much money do you need to open a thrift store?
To open a Thrift Store, plan for at least about $449,500: $87,500 in modeled one-time CAPEX plus $204,000 Year 1 EBITDA loss and $158,000 Year 2 EBITDA loss. That’s why the real question is total funding, not just fixtures or equipment; see What Is The Most Critical Metric For Measuring The Success Of Thrift Treasure? before sizing cash.
Cash Need
$87,500 modeled opening CAPEX
$5,820/month fixed overhead before payroll
$176,000 Year 1 wages
Month 39 breakeven target
Format Risks
Small stores may avoid the $20,000 van
Furniture formats need more floor space
Pickup capacity drives added startup cash
Payback lands around Month 59
Key Takeaways
Buildout and fixtures alone total $50,000 upfront.
Inventory prep can add $8,000 before opening.
Ongoing rent, tech, insurance, and payroll stay heavy.
Revenue fees and marketing take a big cut.
Thrift Store Core Five Startup Costs
Storefront Lease And Buildout Startup Expense
Lease and buildout
$35,000 is the modeled store build-out CAPEX, and $4,500 per month covers commercial lease and utilities after opening. Keep refundable deposits separate from buildout spend and recurring rent. This bucket covers first month rent, utility setup, painting, flooring touch-ups, fitting rooms, donation receiving, lighting, signage readiness, accessibility, and landlord work letters.
What drives the number
Estimate this cost from square footage, store condition, local code needs, furniture display area, back-room size, and whether the space is already retail-ready. A space that already has lighting, restrooms, and a usable sales floor needs less cash than a raw shell. Here’s the quick math: one-time buildout plus monthly occupancy, then add deposits separately.
How to keep it tight
Cut cost by choosing a space with basic retail bones already in place, and by limiting custom work to what changes sales or compliance. Get bids for only the needed fixes, not a full refresh. Watch for hidden spend in signage, accessibility, and back-room sorting space. If the lease needs heavy tenant work, the first year cash burden can jump fast.
Cash timing
Plan the cash flow around opening, not just signing. Refundable deposits should sit outside the $35,000 buildout budget, while the $4,500 monthly lease and utilities start once the store is live. If landlord work delays opening, carrying both rent and renovation spend at the same time can strain startup cash.
Initial Inventory And Processing Startup Expense
Inventory Buy-In
The opening cash buy is $8,000 in purchased initial inventory. Model the Year 1 mix at 50% clothing, 30% home goods, 15% furniture, and 5% consigned items, with price points of $18, $30, $180, and $120. Keep acquisition separate from prep labor and supplies.
Prep Costs
Laundry, cleaning, minor repairs, testing household goods, tagging, bags, bins, and back-room storage are processing costs, not inventory cost. In Year 1, direct item processing is 47% of revenue. Estimate it from item count, labor hours, and supply use per unit. That split keeps gross margin honest.
Consignment Payouts
Consigned merchandise adds sellable stock without the same cash buy-in, but the payout still reduces margin. Year 1 consignment payouts run at 25% of revenue. Track each intake lot by date, item type, and payout term so you can see which pieces earn their shelf space.
Back-Room Control
Use labeled bins, a sorting table, and tight back-room storage so donated goods move fast from intake to floor. One clean rule helps: if it needs extra washing, testing, or repair, book that time against processing, not inventory. That keeps item costs clean and easier to price.
POS, Security, And Retail Technology Startup Expense
POS Stack
A thrift store POS stack covers the register, card reader, receipt printer, barcode labels, inventory software setup, and Wi-Fi. Modeled one-time cost is $4,000. Price it by number of checkout stations, barcode depth, and inventory tracking needs, because each extra lane or label workflow adds hardware, setup time, and software work.
Security Build
Camera system, alarm installation, and the loss-prevention workflow are modeled at $2,500 one time. Size it with store square footage, entry points, back-room layout, and camera count. If the shop has donation intake or furniture storage, place coverage where shrink risk is highest.
Website And Monitoring
A basic website and e-commerce platform are modeled at $3,000 upfront. Keep monthly technology and software subscriptions at $350, security and alarm monitoring at $120, and payment processing fees at 25% of revenue. If online selling stays limited, keep the site simple and skip features you will not use.
Run Rate
The monthly fixed tech load is $470 before card fees. More checkout stations, more cameras, deeper barcode tracking, and broader online selling all raise cost fast. Here’s the quick math: separate one-time spend from monthly run rate, or the startup number will look too low.
Fixtures, Displays, And Store Equipment Startup Expense
Fixture pack
$15,000 is the modeled Retail Fixtures & Displays CAPEX, or one-time equipment spend. Put racks, shelving, bins, furniture displays, checkout counter, carts, mirrors, dressing-room hardware, sorting tables, and donation intake tables here. Keep tags, bags, hangers, cleaning supplies, and maintenance supplies out of CAPEX because they get used up fast.
Price the layout
Size this line by store size, clothing-heavy layout, furniture footprint, aisle width, fixture quality, and used versus new equipment. Get quotes by unit count for each rack, shelf, mirror, counter, and table. One clean rule: more floor space and wider aisles mean more fixture dollars.
Count durable items one by one.
Quote used and new separately.
Track consumables in opex.
Buy smarter
Cut cash needs with used racks and tables, standard sizes, and a phased display plan after opening. Don’t cheap out on stability, mirror mounts, or dressing-room hardware. The common mistake is mixing one-time gear with fast-use supplies, which makes the opening budget look smaller than it really is.
What to separate
Durable fixtures belong in startup capex; tags, hangers, bags, cleaning supplies, and repair supplies should sit in ongoing operating spend. That split matters because the store’s cash need depends on how much you buy up front versus how much you replenish each month.
Licenses, Insurance, Payroll, And Launch Startup Expense
Permits & Fees
This bucket covers business registration, sales tax permit, resale certificate, local permits, sign permit, general liability insurance, workers’ compensation if you hire, bookkeeping setup, staff onboarding, training, and grand-opening marketing. Use $200/month for business insurance and $400/month for accounting and legal. Pre-open payroll and launch ads belong in startup expense, not CAPEX.
Year 1 Payroll
Year 1 wages total $176,000: Store Manager $55,000, Sales Associate $32,000, Curation Specialist at 0.5 FTE for $19,000, and Owner Operator $70,000. Add onboarding and training before opening. Marketing and Advertising is modeled at 50% of revenue in Year 1, so cash need scales with sales.
Budget Inputs
Estimate this cost by adding permit fees, insurance months, opening payroll, and launch marketing. If your city needs extra local permits or a sign permit, add those quotes up front. The quick rule: separate refundable deposits from spend, and keep pre-opening payroll and ads on the P&L, not in equipment or buildout.
Keep It Lean
Control cash by checking local rules before you sign the lease, using one bookkeeping setup, and hiring only when sales can support it. Ask for workers’ comp pricing before you post jobs. A clean launch plan beats a rushed one, and the biggest mistake is underbudgeting the first 60 days.
