Profit First Calculator
Allocate your business revenue using the Profit First method by Mike Michalowicz. Get recommended allocations for Profit, Owner's Pay, Tax, and Operating Expenses.
Part of our Business Calculators collection.
Profit First Calculator
Free online calculator
$
Total sales minus direct material/subcontractor costs
Results update automatically as you type
How to Use This Calculator
- 1
Enter your monthly real revenue (sales minus materials/subs).
- 2
Select your revenue stage.
- 3
View the recommended dollar amount for Profit, Owner's Pay, Tax, and OpEx.
- 4
Transfer these amounts to separate bank accounts on each deposit.
Profit First Target Allocation Percentages
Startup ($0–$250K): Profit 5%, Owner Pay 50%, Tax 15%, OpEx 30% Growth ($250K–$500K): Profit 10%, Owner Pay 35%, Tax 15%, OpEx 40% Scaling ($500K–$1M): Profit 15%, Owner Pay 20%, Tax 15%, OpEx 50% Established ($1M–$5M): Profit 10%, Owner Pay 10%, Tax 15%, OpEx 65% Mature ($5M+): Profit 5%, Owner Pay 5%, Tax 15%, OpEx 75%
Example Calculation
Example: $20,000/month, startup stage
Inputs
realRevenue: 20000revenueStage: startup
Result
Profit $1,000 | Owner Pay $10,000 | Tax $3,000 | OpEx $6,000
At startup stage (5/50/15/30 TAPs): $1k profit, $10k owner pay, $3k tax, $6k opex.
Frequently Asked Questions
What is 'Real Revenue'?
Real Revenue is total revenue minus direct material or subcontractor costs — what your business earns from its own work.
How do I transition to Profit First?
Start from your Current Allocation Percentages then move toward targets in ~1% quarterly increments over 6–18 months.
Do I need separate bank accounts?
Yes. Profit First requires 5 accounts: Income, Profit, Owner's Pay, Tax, and Operating Expenses.