Glossary
Imputed Owner's Salary
An assumed salary for the work of the owner, which does not appear in the costs of sole proprietorships and partnerships. In a valuation, it is deducted so that the profit is realistic.
Related termAdjusted EarningsA company's profit after removing one-off effects, private expenses and a reasonable owner's salary.Next Read moreWhat is a small company worth? Valuation explained simplyNext
FAQ
Frequently asked questions
What is an imputed owner's salary?
An assumed salary for the work of the owner, which does not appear in the costs of sole proprietorships and partnerships.
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