Free calculator for MSP owners
How much can an MSP owner pay themselves?
MSP revenue is steady, which makes steady owner pay easier. What goes wrong is a large renewal or hardware bill landing right after a big draw.
The starting numbers are an example for an MSP. Replace them with yours.
Three rules for paying yourself from an MSP
- Set steady pay from recurring profit.
- Check the next three months of license renewals before any extra draw.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for an MSP
An MSP's recurring revenue makes steady pay easy to plan. The risk is timing. A draw taken in the same month as an annual license renewal or a large hardware order can leave payroll thin.
The worked example
In the example, the business keeps $86,000. That covers $52,000 for two payrolls, $16,000 of monthly bills and $18,000 due soon. Steady pay comes to $12,000 a month. Anything above $86,000 in the bank is spare.
A common question
How should an MSP owner handle annual license costs?
Spread them into the monthly cost in your head, and keep the next three months of renewals out of any draw. The forecast puts each renewal in its week.
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.