How to Calculate Tithe for Business Owners: A Practical Guide

I've been helping Christian business owners navigate tithing decisions for over fifteen years, and let me tell you something straight up.

The question that keeps entrepreneurs awake at night isn't just about profit margins or cash flow.

It's this: "Am I tithing correctly on my business income?"

After walking alongside hundreds of business owners through their stewardship journey, I've seen the confusion, the guilt, and honestly, the relief when they finally get clarity on this issue.

The Real Questions Business Owners Ask

"Do I tithe on gross revenue or net profit?"

"What about business expenses - surely I don't tithe on money that goes straight to suppliers?"

"My business had a great month, but I barely took home anything after expenses. How does that work?"

Sound familiar?

You're not alone in this struggle.

Most pastors haven't run businesses. Most accountants aren't theologians. And most tithing advice treats everyone like they're on a simple salary.

But business income isn't that straightforward, is it?

Why Business Tithing Feels Complicated

Here's what I've learned from years of counselling business owners:

Your revenue isn't your income. That £50,000 that came into your business last month? Half of it might have gone straight back out to suppliers, rent, and employees.

Timing matters. You might invoice £10,000 in January but not get paid until March. When do you tithe?

Business vs personal gets messy. Especially for sole traders and small limited companies where the lines blur.

Let me walk you through how to calculate tithe for business owners properly.

The Biblical Foundation for Business Tithing

Before we dive into spreadsheets and calculations, let's get our theological bearings right.

The principle of tithing - giving a tenth - goes back to Abraham giving Melchizedek a tenth of his spoils of war (Genesis 14:20).

But here's the thing: Abraham tithed on his increase, not his gross revenue.

When Jacob made his vow to give a tenth (Genesis 28:22), he was talking about what God would give him - his actual blessing and increase.

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The biblical pattern is tithing on your increase, your profit, your actual blessing.

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— Scripture Inspiration —

Not on money that was never really yours to begin with.

Method 1: The Profit-Based Approach (Recommended)

This is how most business owners should calculate tithe, and it's the approach I recommend in 90% of cases.

Here's how it works:

• Calculate your business profit (revenue minus legitimate business expenses)
• Tithe 10% of that profit
• Keep it separate from any salary you pay yourself

Let's say your business brings in £100,000 this year.

But you have £70,000 in legitimate business expenses - stock, rent, equipment, staff wages, professional fees.

Your actual business profit is £30,000.

Your tithe would be £3,000, not £10,000.

Makes sense, doesn't it?

You're tithing on what you actually received as increase, not on money that flowed through your business to other people.

Method 2: The Personal Income Approach

Some business owners prefer to tithe only on what they personally draw from the business.

This works especially well if you're reinvesting heavily in business growth.

Here's the calculation:

• Add up everything you take personally from the business
• Include salary, dividends, benefits, personal expenses paid by the business
• Tithe 10% of that total

Sarah runs a graphic design business. Last year, her business made £45,000 profit.

But she only drew £30,000 for herself - the rest stayed in the business for new equipment and building reserves.

Using this method, her tithe would be £3,000 (10% of £30,000).

Dealing with Business Expenses: What Counts?

This is where it gets practical.

Legitimate business expenses you can deduct before tithing:

• Stock and materials you sell
• Rent and utilities for business premises
• Employee wages
• Professional fees (accountant, legal, etc.)
• Equipment necessary for business operations
• Marketing and advertising costs
• Business insurance

What you shouldn't deduct:

• Personal expenses run through the business
• Excessive salary to family members
• "Business" meals that are really personal
• Equipment that's obviously for personal use

Be honest here. God sees your heart, and He knows when you're trying to game the system.

Timing: When to Calculate and Give

This trips up a lot of business owners.

Option 1: Monthly based on monthly profit Calculate profit each month and tithe on it immediately. Works well for steady businesses with predictable income.

Option 2: Quarterly reconciliation Many business owners find this more manageable. Calculate quarterly profit and tithe accordingly.

Option 3: Annual calculation with regular giving Set aside a percentage each month based on estimated profit, then reconcile annually.

I actually use the quarterly approach myself. It gives me time to see the real picture without getting caught up in monthly fluctuations.

Special Situations for Business Owners

Partnership and Multiple Owners

If you have business partners, each person tithes on their share of the profit.

In a 50-50 partnership with £60,000 total profit, each partner would tithe on £30,000 (so £3,000 each).

Reinvestment vs Distribution

Here's where it gets interesting.

Let's say your business makes £50,000 profit, but you reinvest £20,000 in new equipment and only distribute £30,000.

You have two choices:

1. Tithe on the full £50,000 profit (£5,000 tithe)
2. Tithe only on what you actually receive (£3,000 tithe)

Both are biblically defensible. Choose the approach that feels right before God and stick with it consistently.

Seasonal Businesses

If your income varies dramatically by season, I recommend the annual calculation method.

Set aside a percentage each month into a "tithe fund," then reconcile at year-end based on actual profit.

This prevents you from over-giving in good months and under-giving in lean ones.

Practical Examples: Real Business Scenarios

Example 1: The Sole Trader

Mark runs a plumbing business as a sole trader.

Annual revenue: £85,000 Business expenses: £35,000 Personal drawings: £50,000

Profit-based calculation: 10% of £50,000 profit = £5,000 tithe Personal income calculation: Same result since he drew all the profit

Example 2: The Growing Limited Company

Lisa's marketing agency (limited company) has:

Annual revenue: £150,000 Business expenses: £80,000 Profit before tax: £70,000 Her salary: £35,000 Dividends taken: £20,000 Retained in business: £15,000

Option A (profit-based): 10% of £70,000 = £7,000 tithe Option B (personal income): 10% of £55,000 (salary + dividends) = £5,500 tithe

Lisa chooses Option A because she wants to tithe on the business's full blessing, even though she's reinvesting some of it.

What About Business Taxes?

This is a common question, and it parallels the gross vs net income tithing debate for employees.

Some business owners tithe on profit before taxes, reasoning that the full profit is God's blessing.

Others tithe on profit after taxes, arguing that taxes aren't really their money.

Both approaches are valid. The key is consistency and heart attitude.

Record Keeping for Business Tithing

Keep it simple, but keep it accurate.

Track these monthly:

• Total business revenue
• Total business expenses
• Personal drawings/salary
• Tithe given

I use a simple spreadsheet with these columns. Takes five minutes a month to update.

Your accountant will love you for having clear records, and you'll have peace of mind about your giving.

Common Mistakes to Avoid

Mistake 1: Tithing on gross revenue Unless you're in a very high-margin business with minimal expenses, this often leads to tithing on money that was never really yours.

Mistake 2: Inconsistent methodology Switching between profit-based and personal income methods based on which gives a lower tithe. Pick one approach and stick with it.

Mistake 3: Excluding legitimate business income If the business pays for something personal (like your mobile phone), include that value in your tithing calculation.

Mistake 4: Double-counting Don't tithe on business profit AND on the salary/dividends you draw from that same profit.

When Business Loses Money

This happens, especially in early years or during economic downturns.

If your business makes a loss, you generally wouldn't tithe on business income that year.

But consider your overall financial picture. Maybe you have other income, savings, or your spouse works.

The principle remains: tithe on your actual increase and blessings.

If God hasn't increased you financially this year, you're not obligated to tithe from reserves (though generous giving from savings is always commendable).

Getting Professional Guidance

Look, I've given you the framework, but every business situation is unique.

Consider consulting with:

• A Christian financial advisor who understands both business and biblical principles
• Your pastor (though be aware many haven't run businesses)
• An accountant who can help clarify your actual business profit

Don't let uncertainty paralyse you. It's better to start with a reasonable approach than to give nothing while you figure out the perfect system.

Making It Practical: Your Next Steps

Here's what I recommend you do this week:

Step 1: Choose your methodology (profit-based or personal income)

Step 2: Gather your financial records for the last year

Step 3: Calculate what your tithe should have been using your chosen method

Step 4: Set up a simple tracking system going forward

Step 5: Consider using a tithe calculator designed for your specific situation

The Heart Behind the Numbers

At the end of the day, God cares more about your heart than your calculations.

He knows you want to be faithful. He sees your desire to honour Him with your business success.

The goal isn't perfect mathematical precision - it's faithful stewardship that flows from a grateful heart.

I've watched business owners stress themselves sick over getting their tithe calculation exactly right, and honestly, that's missing the point.

Choose a method that honours God, makes practical sense for your situation, and gives you peace.

Then stick with it consistently.

Your business is a blessing from God. How you steward that blessing - including how much you should tithe - is between you and Him.

The most important thing about learning how to calculate tithe for business owners isn't the perfect formula - it's the faithful heart behind whatever calculation you choose.

Now stop overthinking it and start giving generously from whatever method makes sense for your business and your faith.

God honours obedience more than perfection.