Chair Rent vs Commission Calculator
Renting a chair against working on commission: the weekly take-home under each, the difference, and the revenue at which the two are equal.
Renting a chair, you keep your revenue less the rent and less the product you buy (a percentage of revenue).
How the chair rent vs commission calculator works
Renting a chair, you keep your revenue less the rent and less the product you buy (a percentage of revenue). On commission, you keep the split the salon pays and the salon supplies the product. The tipping point is the revenue where the two are equal: rent ÷ (1 − product share − commission share).
Formula: Rent take-home = Revenue − Rent − Product% · Commission take-home = Revenue × Split · Break-even revenue = Rent ÷ (1 − Product% − Split)
How the two models compare
A fixed cost against a percentage
The two models take their cut in completely different shapes. Renting a chair leaves you revenue − rent − your own product: the rent is fixed, so once you've covered it every extra dollar is yours, but you buy your own product (around 8% of revenue) and you owe the rent whether the week was busy or dead. Commission leaves you revenue × your split: the salon takes its share of every service, but it supplies the product, the space, the reception and often the clients themselves — and a quiet week costs you nothing but the quiet.
The break-even
The two lines cross at one revenue figure: break-even revenue = rent ÷ (1 − product% − split). Above it renting nets more, and the gap widens with every extra client you fit in. Below it commission wins, because that fixed rent is taking a bigger and bigger bite of a smaller week.
Worked example
At $2,000 a week, renting with $450 rent and 8% product ($160) nets you $1,390. The same $2,000 on a 45% split nets $900. Renting is roughly $490 a week better — about $25,000 across a year. But the break-even is 450 ÷ 0.47 = about $957 a week, so drop below that and the split is the safer place to be.
Take-home isn't the whole decision. Renting means running your own business — your own insurance, tools, booking and marketing, and no paid leave. Price your services properly with the salon service pricing calculator and sanity-check the set-up cost with business startup before you sign.
Rent & split baselinesBusy or quiet — which model fits
Busy, booked-out stylists usually rent
If your column is full and your clients follow you, renting almost always wins. The rent is a fixed cost, so the busier you get the smaller a share of your week it takes — at $2,000 a week a $450 rent plus product is 30.5% of revenue, against a 45% split that never falls. Fill the column further and the gap only grows.
Quieter or newer stylists are safer on commission
If you're building a client base, moving cities, or working somewhere seasonal, the split is the safer place to be. A percentage of a slow week is small but survivable; a fixed rent in a slow week comes out of your own pocket. The salon is carrying the risk, the product cost and usually the client acquisition — which is exactly what the split is paying for.
Run it against your quietest week, not your best
The most common mistake is comparing the rent to a great week. Work out your break-even, then look honestly at your worst months — January lulls, flu season, school holidays. If your quiet weeks sit near or under the break-even, the rent that looked cheap in a good week is the thing that hurts in a bad one.
Frequently asked Frequently asked questions
Where these figures come from
Chair rent and commission splits are commercial terms negotiated between a salon and a stylist, not legislated figures. The comparison here is a standard break-even calculation applied to the two models; the baselines are market observations for Australia in 2026.
- Rent model take-home — revenue − rent − product (product bought by the renter, ~8% of revenue).
- Commission model take-home — revenue × the stylist's split; the salon supplies product, space, reception and often the clients.
- Break-even — the revenue where the two are equal: rent ÷ (1 − product% − split).
- Baselines — planning figures only: chair rent $350–750/week (Sydney ~$538, Melbourne ~$448); splits commonly 40–50%, up to 60% for top earners.
- Further guidance — business.gov.au — Australian government business guidance.
Last checked: July 2026. This is a planning estimate, not financial, tax or legal advice. Rents, splits and inclusions vary by salon and region — use the actual terms you've been offered, read the agreement carefully, and get advice on how you'd be engaged before you commit.
Understanding your resultSelect the question that matches where you are right now.
The headline number is the weekly difference between the two models at your revenue — how much more renting leaves you than the split, or the other way round. The breakdown shows the take-home under each model side by side and the break-even revenue where they meet.
What to do with itCompare it against your quiet weeks, not just your good ones. If your worst months sit near the break-even, the rent that looks cheap today is the cost that bites in January.
What it is notIt's not the whole picture. Renting means your own insurance, tools, booking and marketing, and no paid leave — and it isn't legal advice on how you'd be engaged.
Why the break-even mattersIt's the one number that settles the argument. Above it renting wins and keeps winning; below it the split protects you. Everything else is negotiating around that line.
Three things decide it: how full your column is, what the rent costs, and what share the salon wants.
Your weekly revenueThe single biggest lever. Rent is fixed, so a busier column shrinks it as a share of your week — while the split takes the same percentage no matter how hard you work.
The rent — and its inclusionsTwo $450 chairs aren't the same deal if one includes reception, laundry and utilities and the other is bare space. Price the inclusions before you compare the rents.
The split & the productA 45% split and a 50% split are a big gap over a year. And product is the hidden asymmetry: renters pay it, commission stylists don't — at $2,000/wk that's $160 a week the split never charges you.
A few checks before you sign either way.
Use real revenuePull your actual weekly takings over several months rather than a good week from memory. The average is what pays the rent, and the low weeks are what test it.
Cost your product honestlyTrack what you actually spend on colour and back-bar. A colour-heavy column runs well above 8%, and that's the number the rent model lives or dies on.
Get the terms in writingRent, inclusions, notice periods, who owns the client bookings. Ask how you'd be engaged and get advice — the money is only half of what you're agreeing to.
If renting wins, you're running a business — model the rest of it.
Price your menuWork out what each service should cost to hit your margin.
Salon service pricing → Your hourly rateCheck the charge-out rate your chair actually needs.
Charge-out rate calculator → Plan the set-upCost the tools, insurance and float before you start.
Business startup calculator → Related calculators 💇Salon Service PricingWhat to charge 🛠️Charge-Out RateYour hourly rate 🚀Business StartupSet-up cost plan 📈Profit MarginMarkup & margin ⚖️Break-EvenSales to cover costs 🧾GST CalculatorAdd or strip 10% You might also be interested in 💇Salon Service PricingWhat to charge 🛠️Charge-Out RateYour hourly rate 🚀Business StartupPlan the set-up 📈Profit MarginMarkup & margin ⚖️Break-EvenCover your costs 🏦Business LoanFund the fit-out Rate this calculatorQuick answers
Chair rent vs commission at $2,000/week Rent nets ~$490 more
For a stylist billing $2,000 a week, renting a chair at $450/week (buying your own product at ~8% of revenue) nets about $1,390, versus $900 on a 45% commission split where the salon supplies product. That's ~$490 a week — over $25,000 a year — in favour of renting. The catch: that only holds while you're busy. Renting rewards a full book; commission protects you when it's quiet.
| Rent take-home | $1,390/wk |
|---|---|
| Commission | $900/wk |
| Difference | ~$490/wk |
- Busy? Rent wins
- Quiet? Commission safer
The break-even revenue ≈ $957/week
There's a revenue level where renting and commission pay the same. With $450 rent, an 8% product cost and a 45% split, it's 450 ÷ (1 − 0.08 − 0.45) = about $957 a week. Above that, every extra dollar of bookings favours renting; below it, commission comes out ahead because you're not carrying fixed rent through slow weeks. Know your realistic weekly takings before you sign a chair-rent agreement.
| Break-even | ~$957/wk |
|---|---|
| Above it | Rent wins |
| Below it | Commission wins |
- Formula rent ÷ (1−prod−split)
- Know Your real takings
How much is chair rent in Australia? $350–750/week
Chair or booth rent in Australian salons typically runs $350–750 a week, with city salons at the higher end (Sydney averages around $538, Melbourne about $448). As a renter you're effectively a small business: you keep all your takings but pay the rent whether you're busy or not, buy your own stock, manage your own bookings and clients, and handle your own tax and insurance. It suits established stylists with a loyal following.
| Typical | $350–750/wk |
|---|---|
| Sydney avg | ~$538/wk |
| You keep | All takings |
- You pay Rent regardless
- Suits Established stylists
How do salon commission splits work? Usually 40–50% to the stylist
On commission, the salon takes a share of your service revenue — commonly leaving the stylist 40–50%, sometimes rising to 60% for top earners — and in return supplies the space, product, reception, marketing and clients. You carry no fixed cost, so a quiet week just means a smaller pay, not a loss. It's lower-risk and lower-ceiling: great for building a client base, less rewarding once you're consistently booked out.
| Stylist keeps | 40–50% |
|---|---|
| Top earners | Up to 60% |
| Salon supplies | Space + product |
- No fixed cost Lower risk
- Lower ceiling Once busy
Who pays for product? Renter: you. Commission: salon
A key difference the numbers hinge on: on commission the salon usually supplies colour and consumables, but as a renter you buy your own — roughly 5–10% of your service revenue. That product cost is already built into this calculator's rent side (default 8%). It's easy to forget when you're comparing a headline rent to a headline split, and it can swing the break-even by a week's worth of bookings. Cost your real product usage, not a guess.
| Commission | Salon buys |
|---|---|
| Renting | You buy (~8%) |
| Don't forget | In the comparison |
- Heavy colour work Higher product %
- Cost Your real usage
Which model suits you? Risk vs reward
It comes down to risk appetite and how busy you are. Renting is higher-reward but higher-risk: you keep everything above the rent, but you owe the rent even in a bad week, and you take on the admin of a small business. Commission is steady and simple — no fixed cost, someone else handles the overheads and often the clients — but you'll always share your best weeks. Many stylists start on commission to build a book, then switch to renting once demand is reliable.
| Renting | High reward/risk |
|---|---|
| Commission | Steady/simple |
| Common path | Commission → rent |
- Reliable book? Rent
- Building up? Commission
Worked examples
| Inputs | Difference per week | Note |
|---|---|---|
| 2,000 a week, 450 rent, 45% commission, 8% product | $490.00 | renting wins by 490 a week |
FAQFrequently asked questions
What rent and split should you expect?
These are 2026 Australian planning baselines — the actual numbers are negotiable and vary a lot by suburb: Chair rent — $350–750/week . Sydney averages around $538 and Melbourne around $448 . Premium inner-city salons sit at the top of the range; suburban and regional chairs sit well below it. Commission split — commonly 40–50% to the stylist, climbing toward 60% for top earners with a full column. Juniors and stylists still building a client base sit lower. Product on the rent model — ~8% of revenue . That's your colour, developer, foils and back-bar. A colour-heavy column runs higher; a cutting-only column runs lower. What the rent includes matters as much as the number itself. Some chair rents cover reception, laundry, towels, booking software and utilities; others are close to bare space with everything else on you. Two salons quoting $450 can be very different deals, so get the inclusions in writing before you compare them. Which model suits you
Is it better to rent a chair or work on commission?
It depends almost entirely on how busy you are. Renting is a fixed cost, so every extra dollar you take above the rent is yours — the busier you get, the better it looks. Commission is a percentage, so the salon takes its share no matter how big or small your week is, but you owe nothing in a quiet one. At $2,000 a week with $450 rent and 8% product, renting nets about $1,390 against $900 on a 45% split — roughly $490 a week more. Drop to a quiet week under about $957 and the commission model is ahead, because the rent doesn't shrink with your column. Booked-out stylists with a loyal client base usually do better renting; quieter or newer stylists are safer on commission with no fixed rent to find in a slow week.
How much is salon chair rent in Australia?
Chair rent in Australia typically runs about $350 to $750 a week in 2026, depending on the city, the suburb and what the salon includes. Sydney averages around $538 a week and Melbourne around $448, with premium inner-city locations pushing toward the top of the range and suburban or regional salons sitting lower. What's included matters as much as the number: some rents cover reception, laundry, towels, booking software and utilities, while others are close to bare space. Ask exactly what you're getting before you compare two rents — and check whether the rent is charged weekly or as a percentage floor, because a few salons use a hybrid.
How do salon commission splits work?
On a commission model you keep an agreed percentage of the service revenue you generate and the salon keeps the rest. In Australia splits commonly sit at 40–50% to the stylist, rising toward 60% for top earners with a strong column. In exchange the salon supplies the product, the space, the reception and the booking system, covers the utilities and marketing, and often supplies the clients themselves — you're not paying for any of it out of your own pocket, and there's nothing to pay in a week where nobody books. The trade-off is that the salon's share doesn't fall away as you get busier, so a stylist who fills their column completely gives up a growing amount of money to the split.
What is the break-even for renting a chair?
The break-even is the weekly revenue at which both models leave you the same take-home: break-even revenue = rent ÷ (1 − product% − split). With $450 rent, 8% product and a 45% split, that's 450 ÷ (1 − 0.08 − 0.45) = 450 ÷ 0.47, or about $957 a week. Above that figure renting nets you more and the gap widens with every extra client; below it the commission split wins because the fixed rent is eating a bigger share of a smaller week. It's worth working out your own break-even and then comparing it honestly against your quietest weeks, not your best ones — the rent is due in January and in a flu week just the same.
Who pays for product?
On a commission split, the salon supplies the product — colour, developer, foils, back-bar — and it comes out of their share, not yours. When you rent a chair you're running your own business inside someone else's salon, so you buy your own product and it's a real cost against your revenue, typically around 8% of what you take, and higher if your column is colour-heavy. That difference is why you can't compare rent against a split on the rent alone: at $2,000 a week, 8% product is $160 that a commission stylist simply never pays. Renters also usually cover their own insurance, tools and often their own booking and marketing, so cost those in too before you decide. Sources
The sources behind this calculator
- Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
- US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardised
- Australian Securities and Investments Commission — the Australian corporate regulator
Last checked: July 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.