Starting an interior design business comes with creative freedom, but it also requires making decisions most designers were never taught—like how to pay yourself. Whether you’re already running a firm or planning to start one in the future, figuring out your salary can be confusing.
This guide breaks down what interior design business owners typically earn, how different pay styles work, how to calculate your salary, and how systems like Profit First can add stability to your business ventures.
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What is the average interior design business owner’s salary?
Interior designer salaries vary from business to business. Profits depend on several variables, from firm size and services offered, to location and professional experience.
Instead of setting your mind on a specific salary, use these ranges to predict what you could potentially make as an interior designer:
- New solo business owners: $30,000 to $60,000 per year
- Established solo owners: $60,000 to $120,000
- Owners of small design firms: $100,000 to $250,000 or more
- Owners in luxury markets or multi-designer firms: $250,000 to $500,000+
Salary vs. owner draw: what’s the difference?
Business owners typically pay themselves in one of two ways: salary or owner draw:
Salary — a fixed, recurring payment processed through payroll. These payments include regular tax withholdings and offer consistent monthly income. This structure is common for larger businesses. It’s a requirement for the S-corp filing status.
Owner draw — a flexible withdrawal from business funds. With this format, owners take money out when they need it. Taxes are paid either quarterly or annually. Many sole proprietors and new LLC owners start with owner draws because the setup is simple and they need access to the income as they earn it.
Here’s a quick glimpse at the differences between these two payment styles:
Salary
- Paid on a consistent schedule
- Taxes are withheld automatically
- Works well for S-corps or large firms
- Provides a predictable personal income
Owner Draw
- Money is transferred to personal accounts as needed
- Taxes are handled quarterly or annually
- Suitable for new, small businesses
- Offers flexibility but also requires discipline
How to calculate your salary as a business owner
Calculating your salary begins with understanding your numbers. Use the following steps to find a number that is intentional based on data from your business.
1. Start with your revenue
Look at your annual revenue and break it down by service. This will give you a realistic view of what your business can support. Here are some examples of profitable services to separate:
- Full-service design
- Design-only packages
- E-design
- Procurement revenue
- Consultations
- Passive income for interior designers
- Any other income sources
2. Review your operating expenses
As a business owner, you need to be aware of every expense. Here are some common expenses to look for:
- Team salaries or contractor costs
- Marketing
- Software and tools
- Administrative expenses
- Office operations
3. Identify your profit margins
Do you know how much of your revenue is profitable? If not, it’s time to take a closer look. Most interior design firms aim for:
- 30–40% gross profit
- 15–25% net profit
If your firm is not hitting these numbers consistently, it may be difficult to support a higher salary without adjusting your pricing or process.
4. Choose a pay structure
Your salary can take several forms. Each structure has pros and cons, so the right choice depends on your cash flow and goals. Here are a few to consider:
- A fixed monthly amount
- A base salary plus quarterly profit distributions
- A percentage of revenue
5. Test your salary against real cash flow
Ask yourself these questions, and adjust your salary as needed until the answer is “yes”:
- Can the business support this salary every month?
- Can the business still cover taxes, expenses, and profit?
- Does the number reflect the value I bring today?
Using the Profit First method to pay yourself
The Profit First system removes guesswork and helps owners create consistency with their salary even when revenue fluctuates.
The method starts with setting up separate bank accounts. Most firms open five separate accounts, paying them from each project in this order:
- Income (all revenue deposits)
- Profit
- Owner’s Compensation
- Tax
- Operating Expenses
Once these accounts are set up, it’s time to assign Target Allocation Percentages (TAPs). Percentages may look something like this:
- 5–10% for profit
- 30–40% for owner’s pay
- 15% for taxes
- 35–50% for operating expenses
Twice a month, you transfer money from the Income account into the others based on these percentages. You then pay yourself from the Owner’s Compensation account. The Profit account is saved for the business, and the Tax account ensures you are prepared at filing time.
Factors that affect your salary as an interior designer
Understanding each of these factors will help you set a realistic salary that grows with your business:
- Business model: Full-service design often leads to higher revenue than consultations, design-only packages, or e-design services.
- Pricing structure: Businesses with clear pricing models typically maintain stronger margins than those that price per project.
- Overhead: Higher expenses reduce the amount left over for the owner.
- Team structure: Owners who delegate design work and focus on CEO responsibilities often earn more because they can spend more time nurturing their business.
- Business maturity: New businesses rarely match the earning power of experienced firms.
Common salary strategies for interior design business owners
Once you have a number in mind, revisit these strategies to see if they can comfortably increase your earnings. They go beyond set salary vs. payment draw to accommodate the specific needs of your business.
- Base salary plus profit distributions: Some owners take a modest salary and then receive additional income when the business performs well. This method pairs well with Profit First because profit distributions are built into the structure.
- Percentage of revenue: Some solo designers pay themselves a percentage (often 30-40%) of their gross revenue. This method is straightforward and ties pay directly to performance.
- Seasonal or tiered salary: In markets with predictable busy and slow seasons, some owners adjust their salary throughout the year. This method requires careful planning but reflects real revenue patterns. It can help businesses get through the slow season without worrying about cash flow.
We hope this information makes it easier for you to understand your salary and choose a payment structure. Whether you use Profit First, a fixed salary, or a more customized approach, the goal is the same: create a compensation plan that is sustainable, realistic, and aligned with the future growth of your design firm.
Want to learn more about optimizing your interior design salary? Read through our guides How to Charge for Interior Design and Interior Design Pricing Packages next.
