How do I calculate my salon service prices?

Add up all costs: product cost, stylist time (at their hourly rate), and overhead per hour (rent, utilities, insurance etc). This gives your minimum price. Then apply your target profit margin to get the recommended price. Most salons aim for 50-65% gross profit margin.

What should my target profit margin be?

Most successful salons target a 55-65% gross profit margin on services. This covers costs and leaves enough for reinvestment, training and profit. Lower-cost services like blow-dries may have higher margins, while product-heavy services like colour may have lower margins.

Should I include VAT in my displayed prices?

In the UK, if your salon turnover exceeds the VAT threshold, you must charge 20% VAT on services. Most salons display VAT-inclusive prices. If you are not VAT registered, your prices do not include VAT. This calculator shows both the ex-VAT and VAT-inclusive price.

How do I calculate my overhead cost per hour?

Add up all monthly overheads: rent, utilities, insurance, software, marketing, cleaning, etc. Divide by the number of productive hours per month (typically 140-160 hours for a full-time chair). This gives your overhead cost per hour per chair.

CutCalcs

Service Pricing Calculator — Calculate Salon Service Prices

Work out minimum and recommended service prices based on time, product cost, stylist rate and overheads.

Service TypeSelect the type

Service Time

Time this service takes in minutes

Product Cost

Colour, foils, product used

Stylist Hourly Rate

Speed or rate value

Overhead Per Hour

Rent, utilities, insurance etc

How We Calculate This

This calculator determines profitable service prices by adding up all costs and applying your target profit margin.

The formula

Total cost = Product cost + (Stylist rate x Hours) + (Overhead per hour x Hours)

Recommended price = Total cost / (1 - Target margin %)

Frequently Asked Questions

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Last updated: March 2026

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