Resource for Ownership Intelligence


Family Business Growth Calculator (FBGC)

The FBGC calculates how much your family business needs to expand its profits* to support future generations at the same standard of living you now enjoy, we call this intergenerational equity.   In our experience, your children will likely want (and perhaps even expect) to live your current lifestyle by the time they reach age 30. The FBGC projects the annual average growth rate your business profits* will need to achieve to pass down the business so it will support your kids at your current lifestyle.

NOTE/Disclaimer: This calculator works based upon your assumptions. The actual growth rate needed may be very different. Do not rely on this calculator as an accurate prediction of the future. Consultant your attorney, accountant and investment advisor to guide you on how to use this calculator and its results for any investment, spending, or other decisions.

*(sales will have to grow as well, but it is profits that pay for your lifestyle, not sales)

Family Business Growth Calculator


Projected Inflation Rate Assumption Historically, inflation has averaged 3 to 4 percent per year. Inflation in the 1970’s was in the teens and inflation in 2007 was lower than 3%. Pick a rate that you think will represent the next 20 to 40 years.
Tip: You might want to factor in a different inflation rate than the government reports, based on what goods and services you consume. For instance, if your purchases are weighted heavily on food and fuel, your personal inflation rate could be much different than the long-term average.


How Many Families Does Your Business Currently Support? Enter the number of family members who are stockholders (receiving dividends/distributions) and/or employees (receiving salary) from the family business.

How Many Additional Families Do You Want It To Support ? Enter the number of family members who will be stockholders or employees of the family business (see “how many years to reach that support?” below).

How Many Years To Reach That Support ? Tip: Your children will likely want to enjoy your current lifestyle by the time they reach age 30. If your youngest child is currently 10 and the oldest 15, you may want to enter 15 to 20 years to meet this expectation. If you believe some other age, such as 40 or 50, is more appropriate, enter the number of years until your children will completely share in the family business fortune.

Growth Rate Needed