Free calculator for gym owners
How much can a gym owner pay themselves?
How much a gym owner can take depends on profit after rent and equipment. Gyms carry large fixed costs, so a good month and a bad month can be far apart.
The starting numbers are an example for a gym. Replace them with yours.
Three rules for paying yourself from a gym
- Set a steady monthly pay from average profit across the year.
- Take extra draws only when cash covers two payrolls, a month of rent and the equipment payments ahead.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a gym
A gym's best cash week is right after the billing run. That is when it feels safe to take a draw. Check the balance on the day before the next billing run instead. That day is the low point.
The worked example
In the example, the business keeps $54,000. That covers $24,000 for two payrolls, $22,000 of monthly bills and $8,000 due soon. Steady pay comes to $7,200 a month. Anything above $54,000 in the bank is spare.
A common question
When should a gym owner take a draw?
After the books close for the month and only from cash above the safe line on the lowest day of the month, which is usually just before the billing run.
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.