What costs should I include in service pricing?

Include three categories: product costs (everything used during the service), labour costs (stylist time including consultation, service, cleanup), and overhead costs (a portion of rent, utilities, insurance, software, marketing, laundry, equipment depreciation). Many salon owners underestimate overheads, leading to prices that do not cover true costs.

How do I calculate overhead cost per hour?

Add up all monthly overheads: rent, utilities, insurance, software, marketing, laundry, cleaning, equipment maintenance, professional development. Divide by the total working hours per month across all chairs. For example, £6,000 monthly overheads / 400 working hours = £15/hour overhead per styling position.

What profit margin should I aim for?

A healthy salon profit margin is 15-25% after all costs. Below 15% leaves little room for investment, growth or unexpected expenses. Above 25% is excellent and allows for reinvestment. Remember, profit margin is what remains after paying yourself a fair salary — your wage is a cost, not profit.

How do I know if my prices are too low?

If your total cost (products + labour + overheads) is more than 75-80% of your service price, your prices are likely too low. Signs include: struggling to cover bills despite being busy, not being able to invest in training or equipment, and earning less than you would as an employed stylist elsewhere.

CutCalcs

Service Cost Calculator — True Cost of Delivery

Calculate the true cost of delivering a service including time, products and overheads.

Product Cost

All products used

Service Time

Time this service takes in minutes

Stylist Hourly Wage

Value for stylist hourly wage

Overhead Per Hour

Rent, utilities, etc. per hour

Target Profit Margin

Percentage value

How We Calculate This

This calculator determines the true cost of a salon service by combining product costs, labour costs and overhead allocation, then adds a profit margin to suggest a minimum service price.

The formula

Total cost = Products + (Hourly wage x Time) + (Overhead/hour x Time)

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

Frequently Asked Questions

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Last updated: February 2026

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