Free calculator for web agency owners
How much can a web design agency owner pay themselves?
Web agency revenue comes in lumps as projects launch. Steady pay should come from average profit, with the care plan base as the floor.
The starting numbers are an example for a web design agency. Replace them with yours.
Three rules for paying yourself from a web design agency
- Base steady pay on average profit across several months.
- Count final payments as cash only when they arrive.
- Personal taxes come out of what you take. Ask your accountant how much to set aside.
What changes the answer for a web design agency
A month with three launches can look like a raise. It pays for months of work already done. Keep steady pay at the level an average month supports.
The worked example
In the example, the business keeps $42,000. That covers $32,000 for two payrolls, $5,000 of monthly bills and $5,000 due soon. Steady pay comes to $7,200 a month. Anything above $42,000 in the bank is spare.
A common question
How should a web agency owner handle lumpy project income?
Set a steady salary from average monthly profit. Take extra distributions after a strong quarter, once the cash is in.
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.