How Much Money Should Martial Arts Schools Make? 💰

I know it can feel taboo to talk about numbers when it comes to martial arts schools,

and I know there is going to be a bunch of “McDojo” comments, but this is important. If you want to teach martial arts solely for the love of it, without making a cereer out of it, you can stop reading here. This is for martial artists who love what they do AND want to make a great living too. 

Let’s talk numbers.

I had a school owner ask me last week:

"Matt, I’m making $22K a month in revenue, but after paying my instructors, rent, and bills… I barely have anything left. What should I actually be making?"

I get this question all the time, so let’s break it down.

The 30% Rule

If you’ve been following me for a while, you know I preach the 30% payroll rule, which means your total payroll (including yourself) should be 30% or less of your gross revenue.

So, if your school makes $30K per month, your payroll bucket is $9,000 max for everyone on staff, including yourself. 

If you have two full-time positions ( we use Program Director & Head Instructor), that means they split whatever is left after paying part-time help (if any).

Here’s how that plays out:

💰 $30K/mo revenue → $9K payroll → split = $4,500 each
💰 $40K/mo revenue → $12K payroll → split = $6,000 each
💰 $50K/mo revenue → $15K payroll → split = $7,500 each
💰 $70K/mo revenue → $21K payroll → split = $10,500 each
💰 $100K/mo revenue → $30K payroll → split = $15,000 each

And if you’re the only full-time person? You keep the whole bucket.

This is why hiring smart matters, if you bring on part-time help, their pay comes out of the bucket first.

For example, let’s say you’re at $40K/month, and you hire a part-time instructor for $2K/month. Now, there’s only $10K left to split between you and your head instructor.

But here’s the thing…

Hiring is still a GOOD thing.

The more you delegate, the more time you free up for revenue-generating activities, teaching fewer classes, running mass enrollments, building partnerships, and leveling up your school.

More revenue = a bigger payroll bucket for everyone.

What About School Owners?

Now, let’s talk your pay. The rule of thumb is to have a 20-30% profit margin after ALL expenses: including rent, payroll, taxes, marketing, etc. 

At a minimum, you should be pulling:

💰 $50K/year once you hit $20K/mo revenue
💰 $75K/year at $30K/mo revenue
💰 $100K/year at $40K/mo revenue
💰 $150K+/year at $60K/mo  revenue

This is JUST PROFIT- not including if you put yourself on the payroll as an instructor, which you should if you play that role.  

If you’re at $50K/month and still making $50K a year… you’ve got a problem.

What’s the End Goal?

If you want real financial freedom from your school, you should aim for $100K-$200K per year as an owner.

Not from teaching 25 classes a week, but from owning a business that runs with or without you.

But if you LOVE the day to day grind and teaching, even better! These numbers will be even higher for you, because you play two positions: owner and instructor. Double dipping has never been sweeter.

The sooner you get your payroll right, the sooner you build a real business, not just a full-time job that pays like a part-time one.

I know this was more of a numbers-heavy newsletter than usual, but trust me… getting your payroll and pay structure right changes everything.

As always, 3 min read, no fluff, all strategy.

Your Hype Man,
Matthew Brenner

P.S. Want a contractually guaranteed way to add 30 new students in 60 days—without spending a dime on ads? I’m the only coach that offers this. Schedule a 10-minute Discovery Call with me here 👉 https://calendar.app.google/4iebpmfcm547p5Bu6

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