Founder Salary Calculator

This Founder Salary Calculator in Excel will help you work out how much you should pay yourself as the company Founder.

by Christoph Janz
Managing Partner at Point Nine CapitalFollow 216

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Description
This model works out how much the founder should pay his/herself based on 3 things: stage, family, place.

Stage: This is based on the stage in which your business is at, generally corresponding with Series A, B, & C. At the beginning, unless you've been able to generate revenues from the very start, it's unlikely that as a founder, you'll be in the position to pay yourself any sort of salary. As soon as you feel like the company can afford it, you should be able to pay yourself enough so that you're not stressed about making ends meet.

Family: This approach takes into account the personal situations of each founder as opposed to just performance. Therefore, this model adds $10,000 for each child added.

Location: To have a similar living standard for each city, this model defines Berlin as 1.0x, Paris as 1.3x, London as 1.5x, and San Francisco as 1.8x. These are approximately aligned with the data that has been published on christophjanz.blogspot.com. The ratios for other cities can be found on the same site.

Notes included.

*Originally shared on christophjanz.blogspot.com*

This Best Practice includes
1 Downloadable Founder Salary Calculator in Excel, 1 Notes in PDF format