Booth rent vs commission calculator

Thinking of moving from commission to renting a booth or suite, or back? Enter the revenue your services bring in each month, the split you keep on commission and what renting would cost you. You see what you keep each way and the revenue where the two are equal. Nothing is saved or sent anywhere.

Your revenue and split worked example: replace with your own numbers

Service revenue per month ($) Commission: % of revenue you keep Commission: product or other fees the salon charges you per month ($)

If you rent

Booth or suite rent ($) Rent is paid per Your product / backbar per month ($) Card processing % Other renter costs per month ($)

This compares money only. It leaves out income tax, any employer-paid benefits or taxes on commission, who keeps the client list, and the time a renter spends on bookings, buying and bookkeeping. Other renter costs: booking software, insurance (yearly ÷ 12), education and the like. The break-even treats your product cost as a fixed monthly amount.

How it works

Commission take-home = revenue × your split − any fees the salon charges you. Booth rent take-home = revenue − rent per month − product − card fees (revenue × card %) − other costs. Break-even revenue = (rent + product + other − salon fees) ÷ (1 − card % − your split).

Worked example (the values above): on commission you keep $6,000.00 × 45% = $2,700.00. Renting, $300 a week is $300 × 52 ÷ 12 = $1,300.00 a month and card fees are $6,000.00 × 3% = $180.00, so you keep $6,000.00 − $1,300.00 − $450.00 − $180.00 − $140.00 = $3,930.00. On these numbers renting leaves $1,230.00 more a month. The two are equal at ($1,300.00 + $450.00 + $140.00) ÷ (1 − 0.03 − 0.45) = $1,890.00 ÷ 0.52 = $3,634.62 of revenue a month; below that, commission leaves more.

At $3,000.00 of revenue the same split leaves $1,350.00 on commission and $1,020.00 renting, so commission is ahead by $330.00. Work out what to charge with the salon service price calculator, or see all calculators.