One of the biggest questions we get from therapy practice owners—especially solo or small group practices—is:
“How much should I actually be paying myself?”
It’s one of those awkward money questions that no one teaches you how to answer when you’re starting out.
You’re trying to balance making a living, covering your business expenses, planning for taxes, and still growing something sustainable.
So, instead of picking an arbitrary number out of thin air (please don’t do this!), we’ve put together a few ideas to help you determine a good number.
Starting with the most important rule: you should pay yourself in private practice
First Things First: You Should Be Paying Yourself
We’ve seen a lot of therapists wait way too long to start paying themselves consistently.
Maybe they’re worried there won’t be enough left over. Or maybe they’re caught in the feast-or-famine cash flow cycle that’s so common in private practice.
But here’s the truth: your practice exists to serve you, too. Paying yourself isn’t selfish. It’s a sign of a healthy, sustainable business.
And if you don’t build your paycheck into your system early on, it gets harder to untangle later.
So, How Much Is “Enough”?
There’s no one-size-fits-all answer here but there is a smart way to figure it out.
We usually start with this simple equation:
Revenue – Expenses – Taxes = What You Can Pay Yourself
Let’s say you bring in $10,000 a month in revenue from client sessions. After you pay rent, software, insurance, and maybe a virtual assistant, you’ve got $7,000 left. You set aside 25% for taxes ($1,750), and that leaves you with around $5,250.
That $5,250 is what you could pay yourself.
But should you take all of it?
Maybe not. Let’s talk through it.
The 50/30/20 Framework (But Make It Therapy Practice-Friendly)
A helpful way to think about your income is using a modified version of the popular 50/30/20 rule. Here’s how we adjust it for therapists:
- 50% for You: This is your paycheck—the money that goes into your personal account to pay your mortgage, buy groceries, and fund your lifestyle.
- 30% for Practice Expenses: Rent, tools, marketing, clinical supervision, continuing ed, etc.
20% for Taxes and Savings: Quarterly taxes, a buffer for slower months, maybe even saving for future goals.
This isn’t a hard rule, but it helps create a structure so you’re not just guessing or paying yourself too much one month and nothing the next.
Start With a Consistent Base Salary
Even if you can’t pay yourself a lot right now, pay yourself something… and do it consistently.
We like to call this your “baseline paycheck.” Maybe it’s $2,000 a month, maybe it’s $4,000. The point is that it’s regular. It creates stability. And it keeps you from draining your account when a good month rolls in.
Then, when things go well, you can give yourself a bonus. This keeps your business cash flow steady while still letting you benefit from your hard work.
Keep an Eye on Profit
Here’s where working with an accountant or bookkeeper (hi, that’s us) really helps. Once your expenses are covered and your taxes are accounted for, what’s left is your profit.
And your profit is your opportunity.
You can reinvest it (hiring help, upgrading systems, expanding your space) or you can pay yourself more. There’s no “wrong” answer here. But the key is that you know what your numbers are actually telling you.
Get Help Making These Financial Decisions
Your private practice is more than just a job, it’s a business.
And like any good business owner, you deserve to get paid in a way that’s consistent, realistic, and in line with your goals.
At Traktion, we help private practice owners figure this out every day.
Whether you’re brand new or several years in, we’ll help you set up a pay structure that actually works for you (without stressing about taxes, overdrafts, or wondering if it’s “too much).”
Get in touch with us if you want help figuring out your own sweet spot.
We’ll make it make sense.
Until next time!