Free calculator for landscaping owners

How much can a landscaping business owner pay themselves?

A landscaping owner who pays themselves the same in July and January needs the summer to fund the winter. What you can take depends on profit across the whole year.

Three rules for paying yourself from a landscaping business

1. Set steady pay from yearly profit divided by twelve.
2. Take extra draws in the fall only after the winter cash need is covered.
3. Personal taxes come out of what you take. Ask your accountant how much to set aside.

What changes the answer for a landscaping business

Landscaping owners often take the most in the fall, right when the cash has to last until spring. A steady salary from yearly profit, plus a draw in December once winter is funded, keeps the business out of a February squeeze.

The worked example

In the example, the business keeps $83,000. That covers $44,000 for two payrolls, $14,000 of monthly bills and $25,000 due soon. Steady pay comes to $14,400 a month. Anything above $83,000 in the bank is spare.

A common question