Stylists are paid two ways: a flat booth rent (keep service revenue, pay the chair) or a commission split (salon keeps a percentage). Modeling both shows the break-even revenue where they cross.
The example
$3,000 revenue, $700 rent, 50%.
| A | B | |
|---|---|---|
| 1 | Model | Take-home |
| 2 | Booth (−$700) | $2,300 |
| 3 | Commission 50% | → $1,500 |
The formula
The formula:
How it works
How it works:
- Booth rent take-home = revenue − flat rent — the stylist keeps the upside.
- Commission take-home = revenue × the stylist’s percentage.
- The break-even revenue is where they match:
rent ÷ (1 − commission_pct). - Above break-even, booth rent pays more; below it, commission does.
Booth rent rewards volume. Because rent is fixed, every extra dollar of service revenue is the stylist’s to keep — so a busy stylist nets more on a booth. Commission shares both the risk and the reward, which suits a newer stylist still building a book. The break-even revenue (rent ÷ (1 − pct)) is the number that tells each stylist which model fits their chair.
Try it: interactive demo
Revenue, booth rent, commission %.
Variations
Commission take-home
Revenue × %:
Break-even revenue
Where they cross:
Which pays more
Pick the model:
Pitfalls & errors
Rent is fixed. Booth rent is owed whether you’re busy or slow.
Product costs. Booth renters usually buy their own product — net it out.
Percent as decimal. 50% is 0.50 in the formulas.
Practice workbook
Frequently asked questions
How do I compare booth rent and commission in Excel?
What's the break-even revenue?
Which model is better for a busy stylist?
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