00 / Free tool
Founder Salary Calculator
Find the right founder salary based on your company stage, location, co-founders, and revenue. Includes S-Corp tax optimization insights.
01 / Calculator
Founder Salary Calculator
Your Details
Recommended Salary
Recommended Range
$72,000
$43,200 -- $108,000
S-Corp Tax Optimization
If structured as an S-Corp, you can split compensation into salary and distributions to reduce self-employment tax.
$43,200
Reasonable Salary
~60% of total
$28,800
Distribution
~40% of total
$4,406
Est. Tax Savings
per year
Benchmark by Stage
| Stage | Low | Median | High |
|---|---|---|---|
| Pre-revenue | $0 | $30,000 | $60,000 |
| Seed(you) | $48,000 | $80,000 | $120,000 |
| Series A | $100,000 | $140,000 | $175,000 |
| Series B+ | $140,000 | $180,000 | $250,000 |
| Profitable/Bootstrapped | $80,000 | $150,000 | $300,000 |
02 / Notes
How it works
Founder compensation is one of the most nuanced decisions in building a company. Too low, and financial stress impairs decision-making. Too high, and you burn precious runway. This calculator uses stage-based benchmarks adjusted for your geographic cost of living, number of co-founders splitting the economics, and a revenue reasonableness check. The benchmarks are drawn from industry surveys and reflect typical ranges rather than absolutes.
Formula
Base Salary Range = Stage Benchmark (low / mid / high) Adjusted Range = Base x Location Multiplier x Co-founder Discount Location: SF (1.2x), NYC (1.15x), LA (1.1x), Chicago (1.0x), Austin (0.95x), Remote (0.9x) Co-founders: 2 (0.9x), 3 (0.8x), 4 (0.75x) Revenue Cap: Salary should not exceed 20% of annual revenue
Why it matters for your business
The tension between founder pay and runway is real. Every dollar of founder salary is a dollar not spent on growth, and it directly reduces your runway. But underpaying yourself creates financial stress that leads to bad decisions, short-term thinking, and burnout. For S-Corp founders, structuring compensation as a mix of salary and distributions can save thousands in self-employment taxes -- but the salary must be "reasonable" per IRS guidelines.
04 / Next step
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