Free Tool · No Signup

Profit Allocation Calculator

Most owners pay everyone but themselves and scramble at tax time. Flip it: take profit and your pay first, then run the business on what's left. This splits every dollar into Profit, Owner's Pay, Tax, and Operating Expenses — based on the Profit First method's targets by business size.

Your numbers (per month)

Subtract pass-through costs (materials, subcontractors, merchant fees) to get your Real Revenue — the money the business actually keeps to allocate.

Target allocation %

Pick the band that matches your annual real revenue, or set your own. Percentages should total 100%.
Allocations total 100%
Real revenue to allocate / mo
$0
Profit
Owner's Pay
Tax
Operating

Per year

Profit
Owner's Pay
Tax set-aside
Operating

How to actually use this

Open separate bank accounts — at minimum one each for Profit, Owner's Pay, Tax, and Operating. Some banks let you open them free in minutes.

Allocate on a rhythm — twice a month (say the 10th and 25th), move the percentages above out of your income account into each bucket. Run the business only from Operating.

Take profit on purpose — every quarter, distribute most of the Profit account to yourself as a reward. It enforces real profitability instead of hoping for leftovers.

Targets are based on the Profit First method by Mike Michalowicz. This free tool isn't affiliated with or endorsed by the author — it just does the math. Tax % is a planning estimate; confirm with your accountant.

You can't allocate revenue you never captured

This whole system runs on top-line revenue — and the fastest way to grow that without spending more is to stop losing the leads you already have. Every missed call and unreturned text is money that never reaches a single one of these accounts. BizBot's verticals make sure it does.