How much cash should a martial arts school keep?

A martial arts school runs on monthly memberships, usually by bank draft, often under a contract. Belt testing, gear and camps bring in extra cash at set times. Rent and instructor pay are steady, so the school lives on active students.

Payroll per run, all-in $ How often you run payroll Fixed bills per month (rent, loans, insurance, software) $ Days your customers take to pay, on average days Cash in the bank today $

Minimum to keep

Two payroll runs plus one month of fixed bills

Comfortable level

Covers costs while you wait for customers to pay, plus one month

Weeks your cash covers

If no customer paid you

The starting numbers are an example. Replace them with yours.

How cash moves in a martial arts school

Membership drafts bring steady cash, as long as students stay.
Belt testing fees arrive in bursts, a few times a year.
Paid-in-full memberships bring a lot of cash at once for months of classes.
Rent is the largest fixed cost and does not change with enrollment.

Why the usual rule falls short

Two schools each have 150 students. One sells paid-in-full annual memberships. The other bills monthly. The first has cash early but owes a year of classes. The second has steadier cash and a clearer view of profit each month.

How the calculator works

Result	Formula
Minimum to keep	2 × payroll per run + 1 month of fixed bills
Comfortable level	Monthly costs × (days to collect ÷ 30 + 1)
Weeks your cash covers	Cash ÷ weekly costs

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Also for martial arts school owners, see the martial arts school monthly financial report.