Founder Salary Calculator 2023

How much should founders pay themselves?

5.0•2 reviews•

228 followers

How much should founders pay themselves?

5.0•2 reviews•

228 followers

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Hiring software

Six years after the initial release of the P9 Founder Salary Calculator, we've joined forces with Figures to release a new version, updating the methodology and adjusting it based on market data from more than 700 data points collected across Europe.

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Launch tags:Spreadsheets•Venture Capital•Startup Lessons

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SaaS Funding Napkin

Maker

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Several years ago, I did a bit of research into founder compensation and created a simple model that calculates what a typical founder salary might look like based on a few input factors. Since the post is now more than five years old and got a little rusty, I thought it was time for an update! The analysis is based on more than 700 data points provided by Figures. Figures collects live data from 1000+ start-ups and later-stage tech companies across Europe by connecting to its clients' HRIS APIs.

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3yr ago

@chrija Congratulations on the launch of the Founder's Salary Calculator! 🎉 Your fantastic tool gives us an easy way to calculate a typical salary We wish you great success💪

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3yr ago

SaaS Funding Napkin

Maker

@antonikozelski Thank you! Glad you find it useful!

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3yr ago

thanks! very useful Christoph! Why do you think a founder with kids should be pay more? If you take the decision of not having kids, why can't you get the same pay and just live better? For me it's the same to how many hours should you work, if you have kids it's more understandable that you can leave the office however if you decide not to have them, you are expected to stay more. Why can't you leave at the same time and just enjoy your hobbies, rest etc.?

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3yr ago

SaaS Funding Napkin

Maker

@roberjet Thank you for your comment! Especially at the seed stage, founders often pay themselves very low salaries in order to keep as much cash for the company. As a 25 year old single who doesn't do much besides working and sleeping, you don't need a lot of money anyway. :-) That changes when you have kids, and the idea of the "kids bonus" tries to address that. I'm aware that it's controversial, and maybe unexpected to come from a venture capitalist, since it's a somewhat non-capitalist idea (compensation based on needs vs. performance). :-) In the end, it is of course up to the founder team to decide. It's just a suggestion which may work for some teams and may not work for others.

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3yr ago

@chrija yeah, I get that! Obviously the idea is to preserve the most cash for the company, so that you pay yourself the absolute needed. But maybe there is a conversation there around why to pay you well so that you can, Idk, start looking for a house and have more financial stability in a period of many uncertainty (kids are obviously out of debate, but I feel there are other things)

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3yr ago

@chrija @roberjet I think we need to get out of the mindset that founders are only 20-somethings without kids; there is incredible talent out there who have families that need to be considered. If someone is happy at home, i.e. reduced financial stress, there is (for me) a direct correlation to performance at work. Better performance at work means a better company/product. Tl:dr Intangibles that motivate individuals cannot be reduced to a balance sheet. Thanks for sharing this data, @chrija. It's really valuable.

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3yr ago

@roberjet I thought absolutely the same. I was a bit surprised to see this question. To be honest, if the calculator included other factors (such as owning a home or rent), or years of experience, or something like that, I think the data would be much more reliable. Anyways, it's a great starting tool. Thanks for it and congratulations on the launch! @chrija

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3yr ago

DiffSense

What do you emphasis when calculating salaries? Or is it very individual and specific for the different startups?

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3yr ago

Clipara

Do salaries change based on the specialism of the founder? E.g. perhaps technical founders earn more?

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3yr ago

Clipara

Would be strange to have different salaries between a founding team but interested if having a different opportunity cost changes anything

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3yr ago

Thread - Wireframe Generator

This is amazing! And thank you for making this free to use and not hide it behind an email harvester. 😁 Based on my admittedly limited personal data the numbers seem quite good.

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3yr ago

REimagine

Congratulations on the launch! This tool is an amazing and precisely what every founder has been looking for. The age-old conundrum of determining a founder's salary seems to have found its solution. Thank you for creating this!

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3yr ago

Hey guys! This is such a cool decision to create a calculator like this. It's interesting that the founders consider salary to be equal to profit. However, I do have a question regarding the inclusion of the parameter for parental status. Probably it might be more beneficial to calculate the opportunity costs of time spent or not spent with kids, and discount it over the long term, perhaps within a 3-5 year perspective. Wishing you further development and success!

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3yr ago

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