Free calculator for tutoring center owners
How much can a tutoring center owner pay themselves?
A tutoring center's bank balance peaks after package sales, and much of it is owed in sessions. Pay from profit on sessions taught.
The starting numbers are an example for a tutoring center. Replace them with yours.
Three rules for paying yourself from a tutoring center
- Base steady pay on profit across the school year and summer.
- Leave prepaid sessions 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 tutoring center
September package sales can make the center look cash rich. Those sessions still have to be taught, and tutors still have to be paid. Take pay from earned profit.
The worked example
In the example, the business keeps $26,000. That covers $16,000 for two payrolls, $6,000 of monthly bills and $4,000 due soon. Steady pay comes to $3,200 a month. Anything above $26,000 in the bank is spare.
A common question
Is prepaid tutoring revenue profit?
Not until the sessions are taught. Count it as earned session by session.
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.