How Much Should You Pay Yourself? A Guide Based on Revenue

How Much Should You Pay Yourself? A Guide Based on Revenue

A Simple Guide Based on Your Revenue

If you’re like most small business owners, you’ve probably asked yourself:
“How much of this money is actually mine?”

Whether you’re earning $2,000 or $200,000, figuring out how much to pay yourself can feel confusing and inconsistent. Some months you feel rich, others you feel broke—and nothing seems predictable.

Here’s the truth:
You can absolutely pay yourself a consistent salary from your small business.
But you need to start with the right framework.

This post will help you:

  • Understand how to calculate your ideal take-home pay

  • Reverse-engineer your salary based on your business revenue

  • Avoid the most common mistakes (like paying yourself “whatever’s left”)

Let’s break it down.

Step 1: Know Your Personal Monthly Needs

Start with your real life.

How much money do you need to take home each month to cover:

  • Rent or mortgage

  • Groceries

  • Insurance

  • Debt payments

  • Personal savings or goals

  • Childcare or school costs

  • Transportation

  • Subscriptions or memberships

This is your Owner Pay Target — the number that represents what your business needs to consistently pay you in order to fund your lifestyle.

Most people never stop to define this. But when you do, everything becomes clearer.

Inside The Small Business Planner, we help you map this out in real terms—then turn it into an actionable salary goal.

Step 2: Know Your Business's Revenue and Expenses

Next, understand what your business actually brings in and spends.

Here’s the basic equation:
Revenue – Expenses – Taxes = What’s left for you

You need to be crystal clear on:

  • Monthly average revenue (not just best months)

  • Fixed and variable business expenses

  • Approximate tax savings percentage (usually 15–30%)

This helps you see how close—or far—you are from your Owner Pay Target.

Step 3: Pay Yourself on a Schedule

Once you know your number, commit to paying yourself:

  • Weekly

  • Biweekly

  • 1st and 15th

  • Monthly

Even if your business has inconsistent income, consistency in how you pay yourself creates financial stability.

Use a structure like the Core 4 Business Accounts system to:

  • Transfer income to an Owner Pay Account

  • Set aside tax savings

  • Keep business and personal spending separate

  • Track how much you’ve paid yourself

Read: Owner’s Draw vs Salary — What’s Right for Your Business?

Step 4: Adjust As Your Business Grows

Your Owner Pay Target isn’t static. It will grow as your business scales and your life changes.

Revisit your numbers every quarter or six months and ask:

  • Can I increase my salary?

  • Are my expenses still aligned with my goals?

  • Am I saving enough for taxes and profit?

  • Do I need to change my business model to support a raise?

Your business exists to support your life—not the other way around.

Final Takeaway: Your Paycheck Shouldn’t Be a Mystery

You don’t need to cross your fingers every month.
You need a system that helps you earn, allocate, and pay yourself on purpose.

Inside The Small Business Planner and the How to Pay Yourself Consistently training, you’ll get:

  • Templates to set your Owner Pay Target

  • A calculator to test different salary levels

  • A structure to create reliable take-home pay—without stress

Explore The Small Business Planner → https://smallbusinessplanner.com/products/planner

 

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