Free calculator for coworking operators
How much can a coworking space owner pay themselves?
A coworking operator carries a long lease. Pay has to come from profit at normal occupancy, with the risk of empty offices in mind.
The starting numbers are an example for a coworking space. Replace them with yours.
Three rules for paying yourself from a coworking space
- Base steady pay on profit at your usual occupancy.
- Keep member deposits out of any draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a coworking space
Members pay in advance and leave deposits, so the bank balance runs ahead of profit. Take pay from earned profit after the lease is covered.
The worked example
In the example, the business keeps $56,000. That covers $14,000 for two payrolls, $32,000 of monthly bills and $10,000 due soon. Steady pay comes to $5,600 a month. Anything above $56,000 in the bank is spare.
A common question
Are member deposits part of a coworking space's cash?
They sit in your bank but are owed back when members leave. Keep them visible as their own line.
Know what is safe to take, every week
One Page CFO shows the cash above your safe line every Monday, from your QuickBooks, checked by a CFO.