Booth rent means you keep every dollar of service revenue and pay a flat rent; commission means the salon keeps a split (typically 40–60%) and covers most of the overhead. The honest comparison is monthly: commission take-home is your sales times your split, booth take-home is sales minus rent — and the salon supplies, laundry and front-desk work you now do yourself.
The classic guideline: rent should run 15–25% of revenue. Above that, only a very loyal book makes it work. The 50/50 rule of thumb — if half your sales would cover the rent, renting wins — is what this calculator checks with your real numbers.
Remember the hidden costs of renting: self-employment tax, your own supplies, and no paycheck in a slow week. A book that is 80% rebooked is the real qualification for going independent.
Keep going with these tools — they build on this calculation: Tip Out Calculator, Labor Cost Calculator, Restaurant Break-Even Calculator and Restaurant Profit Margin Calculator. When your prices look right, print the menu with the Menu Maker — free templates, PDF & PNG. Want us to set the whole system up for you? Ask about concierge setup.
The working guideline is 15–25% of your service revenue. Check the rent quote against your last three months of sales before signing — $1,200 a month needs roughly $5,000–8,000 in monthly services to stay sane.
New stylists often start at 40–50%, moving toward 60% with a book. Suites and booth rentals are the other path: flat rent, you keep everything, you buy your own supplies.
No — keep it to service revenue for a clean comparison. Tips follow you either way; retail commissions differ by salon and belong in the negotiation, not the model.