How much should I pay myself as a small business owner?

By Gino DiPierro, 2026-10-12

If you're like most small business owners, you pay yourself whatever is left over, when there's something left over. That's stressful for you and for your family, because your household budget never knows what's coming.

Start with your household, not the business

Write down what your household truly needs each month: housing, food, utilities, transportation, insurance and minimum debt payments. That's your floor. The goal is a steady owner's paycheck that covers it.

Then look at what the business can afford

Use your last three to six months of bank statements. Take the money that came in, subtract every business expense, then set aside money for taxes. What's left is what the business can truly afford to pay you right now. Be honest; this number is for you.

Pick a number you can keep steady

Choose an amount the business can pay every single time, even in a slower month. Steady beats big. If your business is seasonal, use the slow months to set the number and let the busy months build a cushion.

Pay yourself on a schedule

Twice a month works well for most owners. Move the money from your business account to your personal account on the same days, every time, just like a real paycheck. Your family budget can finally plan around it.

Raise it on purpose

Every quarter, look at your numbers. If profit is up and your cash cushion is healthy, give yourself a raise. That's what growth should feel like.

• Steady pay comes first, then raises
• Taxes are set aside before you pay yourself
• Salary vs. draws is a question for your CPA

Want help finding your number? Book a free call and bring your last three months of statements.