What profit margin should a salon aim for?

A healthy salon profit margin is 10-20% after all costs. Some premium salons achieve higher margins through efficient operations and high-value services. If your margin is below 10%, review your pricing, product costs and utilisation rate. Remember that profit margin is what remains after paying all costs including your own salary.

What are typical salon overheads?

Salon overheads include rent, utilities, insurance, marketing, reception staff, cleaning, laundry, software subscriptions and equipment maintenance. In the UK, total overheads typically run £15-40 per hour per styling station depending on location. Divide your total monthly overheads by total working hours to get your hourly overhead rate.

How do I calculate product cost per service?

Track how much of each product you use per service. For example, if a 1-litre bottle of shampoo costs £15 and you use 20ml per wash, the cost is £0.30 per shampoo. Add up all products used in a service — colour, developer, shampoo, conditioner, foils, gloves — for the total product cost.

CutCalcs

Pricing Calculator — Service Price Builder

Calculate service prices based on product cost, stylist time, overheads and desired profit margin.

Product Cost

Total product cost for this service

Service Time

Total time including prep and finish

Stylist Hourly Rate

Wage or self-employed rate

Overhead Per Hour

Rent, utilities, insurance etc.

Target Profit Margin

Net profit target: 10-20% typical

How We Calculate This

This calculator adds up all costs involved in delivering a service, then adds your desired profit margin to arrive at the minimum price you should charge.

The formula

Total cost = Product cost + Labour cost + Overhead cost

Suggested price = Total cost / (1 - Profit margin %)

For example, if total cost is £40 and target profit margin is 20%: £40 / (1 - 0.20) = £40 / 0.80 = £50.

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Always perform a strand test before chemical services.