Owner Profitability Calculator

If you’re working in the business and not paying yourself enough. You’ve essentially bought yourself an underpaid job…

This is uncomfortable…but it matters.

A working owner wage should be built into the model, not added as an afterthought.

I created this simple Google Sheet Calculator so you can enter your desired outcomes and move forward understanding exactly how much revenue you need to generate based on your inputs. This works for both existing venue owners and those looking to open their own place!

You enter:

• Desired shareholder income
• Debt repayments (principal)
• Reinvestment into business
• Target COGS % of sales (ex VAT)
• Target Wages % of sales (ex VAT)
• Target Overheads % of sales (ex VAT)
• Sales Tax / VAT %
• Income Tax % (on profit)
• Buffer / Safety Margin % (optional)
• Open Days per year (Optional)
• Current Revenue (inc. VAT – Optional)

You will calculate:

• Required Net Operating Profit
• Total operating costs %
• Revenue Required to hit budget (inc & exc VAT)
• Required Sales (ex/inc VAT) for selected period – day/week/month/year
• Gap between current revenue & target as $ & %

Sounds complicated? It's really not! Just plug your numbers (or best guesses) into the yellow boxes and the sheet does the rest of the thinking for you.