Free calculator for agency owners

Can you afford to hire a new account manager?

A new hire at an agency usually starts before the work that pays for them. If the client pays on 45-day terms, you carry their salary for about three months.

Cash in the bank today$ Cash the business adds each month now$ Monthly cost of the new account manager, with taxes and benefits$ Months until the new account manager brings in revenuemonths Extra revenue per month after that$ Payroll per run today (for the safe line)$

Lowest cash, next 12 months

Cost before they pay off

wages paid before new revenue starts

Paid back by

month the hire covers its own cost

Month	Without the hire	With the hire

The starting numbers are an example for a marketing agency. Replace them with yours.

The worked example

Here a new account manager costs $7,500 a month and starts bringing in $11,000 a month after 3 months. The business pays $22,500 before the hire covers a dollar of it.

How to make the hire safer in a marketing agency

Bill new retainers upfront, so the first payment arrives before the new salary.
Ask for a deposit or first month in advance on large projects.
Use contractors for the first 60 days of a new client, then hire once the client pays reliably.

See every hire in your forecast

One Page CFO adds the hire to your 13-week forecast and shows the tightest week before you commit.

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