How Much Should I Pay Myself as a Business Owner?

You’ve built a successful business. But if you’re still paying yourself whatever happens to be left over, something needs to change. Your business should pay you intentionally, not accidentally.

WORK OUT MY NUMBER

Your Business Is Making Money. So Why Doesn’t It Feel Like It?

Revenue is coming in. The bills are getting paid. From the outside, the business looks successful.

But when it comes to paying yourself, you’re taking whatever is left.

Some months that’s plenty. Other months, not so much.

And despite everything you’ve built, you’re still wondering:

“How much should I actually be paying myself?”

That’s the question we’re going to answer.

So, How Much Should You Pay Yourself?

There isn’t one magic number that works for every business owner.

But there should be a number.

Your pay shouldn’t be whatever is left in the bank account after everyone else has been paid.

Start with the income you want your business to provide for you personally.

Then work backwards.

How much does the business need to generate to cover its operating costs, tax, profit and your pay?

That changes the question from:

“How much can I afford to take out this month?”

to:

“What does my business need to generate to pay me properly?”

Start With Your Number

I've created an Income Goal Calculator to help you work backwards from the income you want and see what your business needs to generate to support it.

CALCULATE MY INCOME GOAL →

Why Business Owners End Up Paying Themselves Last

Most business owners don’t deliberately decide to pay themselves last. It just happens.

Money comes into the business and immediately has somewhere to go.

Suppliers need paying. Wages are due. Software subscriptions come out. Tax is coming. There’s always another expense.

So you look at what’s left and decide whether there’s enough to pay yourself.

The problem is, your business will always have something else to spend money on.

If you pay yourself only after everything else is taken care of, you can build a successful business that pays everyone except you.

Your pay shouldn’t be the reward for having a good month. It should be part of how your business is designed to work.

How to Start Paying Yourself Consistently

Paying yourself consistently starts with deciding that your pay is part of the plan — not whatever happens after everything else has been paid.

Decide what you want to be paid. Start with the personal income you want your business to provide. Not an arbitrary percentage. An actual number that means something to you.
Work out what the business needs to generate Once you know your number, work backwards. Your business needs enough revenue to cover your pay, operating expenses, tax and profit.
Separate the money Instead of keeping everything in one big pool of cash, give your money a purpose. Set aside money for tax, profit, your pay and the costs of running the business.
Pay yourself consistently Create a regular rhythm for paying yourself rather than taking random amounts whenever the bank balance looks healthy.