Compare booth rent and commission without hiding the cost structure
Commission and booth rent allocate risk differently. Under commission, stylist compensation rises and falls with service revenue while the salon usually carries more operating cost. Under booth rent, the stylist keeps more gross service revenue but takes on fixed rent and more business expenses, while the salon receives a predictable chair payment instead of a share of service sales.
Use the same chair revenue for both scenarios
The comparison only makes sense when both models are applied to the same weekly service revenue. Enter the amount actually produced by the chair or stylist, not total salon revenue. This makes the commission split and booth-rent economics directly comparable.
Do not treat booth rent as pure take-home
A renter may pay for products, card processing, booking software, insurance and other operating costs that were previously carried by the salon. Enter those expenses so the booth model reflects business income before personal tax rather than gross sales minus rent.
Model the owner's side separately
For commission, the salon receives chair revenue but pays stylist commission and the employer or product burden entered in the tool. For booth rent, owner income from that chair is the fixed rent before salon-level fixed overhead. This helps show why the model that is best for the stylist may not be the model that maximizes owner contribution.
Use break-even as a decision boundary
The approximate break-even weekly revenue solves for the point where stylist booth income and commission income are equal under the assumptions entered. Above or below that line, the economic preference can change. This is more useful than comparing rent and commission percentages in isolation.
Keep classification and tax questions outside the calculator
This is deliberately a pre-personal-tax operating model. Worker classification, payroll obligations, tax treatment and control over an independent professional depend on jurisdiction and the real working arrangement. Use appropriate professional advice before changing contracts or employment structure.
Frequently asked questions
Does booth rent always pay the stylist more?
No. Fixed rent can be expensive at low chair revenue, while commission automatically falls with revenue.
Does this include personal income tax?
No. It compares operating economics before personal income tax because tax treatment varies.
Why show the owner side too?
Because commission and booth rent redistribute revenue and operating costs differently for both parties.