Free calculator for martial arts school owners

How much can a martial arts school owner pay themselves?

Many school owners teach most of the classes themselves. Your instructor pay and your owner profit are separate. Know both before setting what you take.

Average monthly profit, before you pay yourself$ Cash in the business bank today$ Payroll per run, all-in$ Fixed bills per month$ Big payments due in the next 3 months (tax, equipment, loan balloon)$

Steady monthly pay

80% of average profit

Extra draw you could take now

cash above what the business must keep

Cash the business must keep

2 payrolls + 1 month of bills + big payments

The starting numbers are an example for a martial arts school. Replace them with yours.

Three rules for paying yourself from a martial arts school

Pay yourself for the classes you teach, then take profit separately.
Leave paid-in-full cash for future classes 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 martial arts school

A big paid-in-full month can look like a good month. It is a year of classes paid in advance. Spread it in your head before you spend it.

The worked example

In the example, the business keeps $20,500. That covers $10,000 for two payrolls, $7,500 of monthly bills and $3,000 due soon. Steady pay comes to $2,800 a month. Anything above $20,500 in the bank is spare.

A common question

Is a paid-in-full membership profit?

Only month by month, as you teach the classes. The rest is owed in classes. Keep it visible as its 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.

Check if I fit →