Profit Reinvestment Calculator
Tax comes out before reinvestment.
Reinvested per month
$7,938
$3,402 taken out
Tax comes out before reinvestment, which is the step most owners forget when planning growth from retained profit. Reinvesting the pre-tax figure produces a shortfall exactly when the tax bill arrives.
How the Profit Reinvestment Calculator works
Tax comes out before reinvestment, which is the step most owners skip when planning growth from retained profit. Reinvesting the pre-tax figure produces a shortfall exactly when the tax bill arrives.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How much profit should I reinvest?
Whatever the growth plan requires and the owner can afford to leave in. There is no right ratio — the constraint is usually personal rather than financial.
Why does tax timing matter?
Because tax is assessed on profit whether or not the money is still in the business. Stock bought with pre-tax profit is not deductible against that profit, and the bill arrives regardless.
What return should reinvested profit earn?
More than the alternatives, including simply taking it out. Reinvesting into a business earning 4% a month is compelling; reinvesting into one earning 4% a year is not.
How do I balance drawing and reinvesting?
Set a fixed drawing that covers personal needs and treat everything above it as a reinvestment decision. Variable drawings tend to consume whatever is there.