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How Much Does It Cost To Start a Funeral Home?


Starting your own funeral home business can be a very lucrative endeavor. However, there are many costs and expenses associated with getting a business up and running, and it is essential to understand these before making the leap. 

This article will explore some of the key startup costs involved in starting a funeral home business.


Funeral Service Education

Starting a funeral home begins with obtaining the proper education. You will need to obtain a degree in mortuary science, which you can complete at many community colleges. The cost of this education will vary depending on the school you choose to attend and whether you opt for online or in-person classes. Your education sets you up for obtaining your funeral director’s license.

Average costs for a degree in mortuary science are as follows:

  • Community college – $5,000-$10,000
  • Online courses – $1,000-$3,500
  • In-person courses – $15,000-$20,000


Significant Startup Costs

Once you have completed your education, several significant startup costs are associated with opening a funeral home. These include:

  • Furniture for Funeral Parlor
  • Embalming Machine and Equipment
  • Funeral Service Preparation Room

You need funeral parlor furniture to set up the space where funeral services will be held. This includes chairs, tables, and a pulpit. Average costs are $5,000-$10,000. You will also need to purchase an embalming machine, which is used to preserve the bodies of the deceased. The cost of this machine can range from $5,000-$10,000. In addition, you will need a preparation room where you can prepare the bodies for funeral services. This room should have a sink, counter space, and storage cabinets. The cost to set up a funeral service preparation room is $1,000-$2,500.


Business License and Permits

Before opening your funeral home business, you will need to obtain a business license and the necessary permits. The cost of a business license is $50-$200. You will also need to obtain a funeral director’s license, which costs $100-$300. In addition, you may need to obtain other permits, such as a zoning permit, depending on the regulations in your area. The cost of these permits can range from $100-$500.


Insurance Cost

It is essential to have insurance in place to protect your funeral home business. The insurance cost will vary depending on the coverage you choose and the size of your business. Business liability insurance typically costs $500-$2,000 per year. You may also want to purchase property insurance to protect your equipment and furnishings. The cost of this insurance is typically $500-$1,000 per year.


Business Operations Software

You will need to purchase software to help you manage the day-to-day operations of your funeral home business. Software is a great way to streamline business operations and keep costs low. This software includes a customer relationship management (CRM) and funeral arrangement software. The cost of these systems is $500-$1,000.

Business software for a funeral home can help you with tasks such as:

  • Managing customer information
  • Scheduling funeral services
  • Tracking payments
  • Managing inventory



You will need to market your funeral home business to attract customers. There are several ways to market your business, including online and offline marketing. You can do online marketing through social media, your website, and online directories. Online marketing typically costs $500-$1,000 per month. 

You can do offline marketing through print, radio, and TV ads. Offline marketing costs typically $1,000-$2,500 per month.


Managing Costs to Create a Financially Profitable Business

There are many ways to manage costs and create a financially profitable funeral home business. Some of these include:

  • Offering discounts for pre-paid funeral arrangements
  • Offering payment plans
  • Accepting credit cards
  • Selling funeral products and services online
  • Offering package deals

In addition, you can start small. For example, you can start by offering only cremation services. This will allow you to keep your startup costs low and generate revenue quickly.



Starting a funeral home business can be a rewarding way to help people during their time of need. However, several significant startup costs are associated with opening a funeral home, including education, furniture, equipment, business licenses and permits, insurance, and marketing. By carefully managing these costs, you can create a financially successful funeral home business.

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