About the Booth Rent vs Commission Calculator
This booth rent vs commission calculator compares the two main ways stylists, barbers, nail techs and estheticians work in a salon. On commission, you are typically an employee: the salon sets prices, supplies products and pays card fees, and you keep a percentage of what you bring in. As a booth or chair renter, you pay a fixed weekly rent, buy your own supplies, pay your own card fees and insurance — and keep everything else.
Enter your weekly service and retail sales, the commission split you are offered and the booth rent and expenses you would carry, and the calculator shows weekly and yearly take-home under each model, the difference between them, the highest rent at which renting still beats commission and the weekly service sales at which the two break even. It also shows what the salon owner keeps under each arrangement, which helps owners set fair rent and commission levels.
With the payroll-tax option on (US rules, unchanged for 2026), the commission side subtracts the 7.65% employee share of Social Security and Medicare, while the booth-rental side subtracts self-employment tax of 15.3% on 92.35% of net earnings. Income tax is not included because it applies to both. Tips are left out because they are usually the same either way.
With the default inputs, the yearly difference: booth rent − commission is $38,027.62. Change any value above to recalculate instantly.
How to use the booth rent vs commission calculator
- 1Enter your typical weekly service and retail sales (before tips).
- 2Enter the commission split you are offered on services and retail.
- 3Enter the weekly booth rent and the supplies, card fees and other costs you would pay as a renter.
- 4Leave the payroll-tax option on if you work in the US.
- 5Compare take-home and check the break-even rent before signing a booth lease.
Formula and method
On commission, the stylist earns the service commission rate c on service sales S plus the retail commission rc on retail sales R; the salon pays supplies and card fees. With the tax option on, the employee share of FICA (6.2% Social Security + 1.45% Medicare = 7.65%) is withheld. As a booth renter, the stylist keeps all service sales plus the gross margin on retail, then pays booth rent, supplies, card fees on all sales and other business costs. Self-employment tax of 15.3% applies to 92.35% of positive net earnings, an effective 14.13%.
The break-even rent is the rent at which booth take-home equals commission take-home. The break-even service sales solve the same equality for S, holding the other inputs fixed. Owner income on commission is the salon’s share of services and retail, less retail product cost, supplies, card fees and the employer’s matching 7.65% FICA; under booth rental the owner simply collects rent. Social Security wage-base limits and income tax are ignored.
- S
- Weekly service sales
- R
- Weekly retail sales
- c, rc
- Stylist commission rates on services and retail
- m
- Renter’s gross margin on retail products
Worked examples
$2,500 a week stylist: 45% commission vs $250 rent
On commission the stylist earns 45% of $2,500 plus 10% of $200 = $1,145, or $1,057 after 7.65% FICA. Renting, they keep $2,500 + $100 retail margin − $250 rent − $75 supplies − $81 card fees − $40 other = $2,154, or $1,850 after self-employment tax. Renting is about $38,000 a year better, and stays ahead until rent passes about $1,173 a week.
Newer stylist with a thinner book
With $1,200 of weekly services, 50% commission plus retail pays $605, or $559 after FICA. Booth rental leaves $663 after $300 rent, costs and self-employment tax — only about $5,000 a year more, without benefits. Below about $918 of weekly services, commission would pay more.
Barber comparing without payroll taxes
Ignoring payroll taxes, 40% of $1,800 is $720 a week on commission. Renting a chair for $200 leaves $1,800 − $200 − $75 − $54 card fees − $40 = $1,431. The barber could pay up to $911 a week in rent before commission became the better deal, while the shop keeps $951 a week on commission versus $200 in rent.
Frequently asked questions
Is booth rental or commission better for a stylist?+
Booth rental usually pays more once you have a full, loyal book of clients, because you keep all service revenue after rent and costs. Commission is often better for newer stylists or slower books: the salon provides clients, products and marketing, and you have no fixed rent to cover in slow weeks.
What is a typical salon commission split?+
Service commission for salon employees commonly runs from about 35% to 50%, sometimes tiered upward as sales grow, with retail commission typically around 10% to 15%. Some salons deduct a product or back-bar fee from the stylist’s share.
How much is booth rent?+
Booth or chair rent varies widely by city and salon, from under $100 to several hundred dollars a week. A useful rule of thumb is to keep rent well below the break-even rent this calculator shows, leaving room for slow weeks, vacations and price changes.
Do booth renters pay self-employment tax?+
Yes. In the US, booth renters are self-employed and pay self-employment tax of 15.3% on 92.35% of net earnings, covering both halves of Social Security and Medicare. Commission employees pay only the 7.65% employee half, and the salon pays the other half.
What expenses does a booth renter pay?+
Typically weekly rent, color and back-bar products, tools, liability insurance, a cosmetology or barber license, card processing fees, booking software, marketing, and self-employment tax. Renters also fund their own retirement, health insurance and time off.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.