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Founder Pay Calculator

Profit First methodology for sustainable founder compensation

Profit First Methodology

The Profit First system helps you systematically allocate income to ensure profitability and sustainable founder pay. Start with current reality, transition to target percentages over time.

Current Allocations

Based on $28,000/mo revenue

profit3%

$840

owner pay35%

$9,800

tax15%

$4,200

opex47%

$13,160

Target Allocations

Healthy business benchmarks

profit5%

$1,400

owner pay50%

$14,000

tax15%

$4,200

opex30%

$8,400

Gap Analysis

You're underpaying yourself by $4,200/month

Current: $4,340/mo (35%) → Target: $6,200/mo (50%)

You're overspending on operations by $4,760/month

Current: $5,828/mo (47%) → Target: $3,720/mo (30%)

Recommended actions:

  • • Identify $2,108 in monthly expense reductions
  • • Increase owner pay gradually over 3-6 months
  • • Review all subscriptions and recurring costs
  • • Consider switching to annual billing for discounts

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