Salon Service Pricing Calculator
A price for a salon service from the minutes it takes, the stylist's hourly cost, the chair overhead per hour, product used and a target margin — ex-GST and on the menu.
Labour is the stylist's hourly cost × the minutes ÷ 60; overhead the same way at the chair rate; add product for the cost to deliver.
How the salon service pricing calculator works
Labour is the stylist's hourly cost × the minutes ÷ 60; overhead the same way at the chair rate; add product for the cost to deliver. The price ex-GST is the cost ÷ (1 − margin), and the menu price adds GST. A cost-plus markup, if given, is shown beside it.
Formula: Cost = Product + (Stylist + Overhead) × Minutes ÷ 60 · Price ex-GST = Cost ÷ (1 − Margin)
How the service price is worked out
Cost to deliver, then priced to a margin
First the calculator works out what the service costs you to deliver: labour (stylist wage × service time), chair overhead (overhead rate × service time) and the product used. Then it prices to your margin: price ex-GST = (product + labour + overhead) ÷ (1 − margin). Because labour and overhead both scale with time, a longer service costs more to deliver and prices higher. Finally, if your salon is registered for GST, it adds 10% on top for the menu price — you always price the margin on the ex-GST figure, because the GST isn't yours to keep.
Worked example
A 45-minute women's cut with a stylist on $30/hr is $22.50 of labour, plus $15/hr of chair overhead = $11.25, plus about $2 of product — around $35.75 to deliver. At a 20% margin, the price is 35.75 ÷ (1 − 0.20) = $44.69 ex-GST (about $49 on the menu with GST). Stretch it to a 2-hour full colour — $60 labour, $30 overhead and ~$20 of colour and foils — and you're at $110 to deliver, or about $137.50 ex-GST at the same margin. Same formula, very different plate.
This is a service margin, not net profit. Rent, front-desk wages, insurance and marketing still come out of the gross profit. Use it alongside your profit margin and charge-out rate numbers, not on its own.
Wage & overhead baselinesGST, margin and cost-plus markup
Where GST fits
If your salon is registered for GST — compulsory once turnover hits $75,000 — the 10% you add to the menu price belongs to the ATO, not you. So you price your margin on the ex-GST figure and add 10% on top for the price you display. A service priced at $44.69 ex-GST goes on the menu at about $49.16 inc-GST. If you're not registered, there's no 10% to add and the two prices are the same.
Pricing to a margin
Margin is the profit as a share of the price, so you divide by one minus the margin: price = cost ÷ (1 − margin). A $35.75 service at a 20% margin is 35.75 ÷ 0.80 = $44.69 ex-GST. That's why margin and markup aren't the same number — a 20% margin is a 25% markup on cost.
Cost-plus as a cross-check
Cost-plus works the other way: price = cost × (1 + markup). A 100% markup simply doubles the cost. It's a quick sanity check, but it doesn't guarantee a margin — a big markup on a cheap cut still leaves little in dollars, while a modest markup on a costly colour can be plenty. Price to the margin you want, then use the optional markup field to see how the two compare.
Frequently asked Frequently asked questions
Where these figures come from
Service pricing is a standard small-business costing method, not a legislated figure. The method here follows mainstream cost-plus and margin pricing practice, with the GST handling set to Australia's 10% goods and services tax.
- Cost to deliver — labour (wage × time) + overhead (rate × time) + product and consumables.
- Price to a margin — price ex-GST = cost ÷ (1 − target margin); margin is profit as a share of price.
- GST — Australia's goods and services tax is 10%; a registered salon adds 10% to the ex-GST price for the menu (registration compulsory at $75,000 turnover).
- Baselines — planning figures only: stylist ~$30/hr, chair/overhead ~$15/hr in 2026. Use your own costs.
- Further guidance — business.gov.au — Australian government business guidance.
Last checked: July 2026. This is a planning estimate, not financial or tax advice. Wages, overhead and product costs vary by salon and region — use your own figures and confirm your GST treatment with your accountant or the ATO.
Understanding your resultSelect the question that matches where you are right now.
The headline number is the price to charge for the service ex-GST — the cost to deliver it, marked up to your target margin. The breakdown shows the labour, overhead and product that make up the cost, the profit in dollars, and the inc-GST menu price.
What to do with itUse it as the floor for your menu price. If the market won't bear it, either trim the service time, cut the product cost, or accept a thinner margin — the breakdown shows which lever moves the most.
What it is notIt's not your net profit. Rent, front-desk wages, insurance and marketing come out of the service margin, and it isn't tax advice — confirm GST treatment with your accountant.
Why GST mattersYou price the margin on the ex-GST figure and add 10% for the menu. The GST you collect is remitted to the ATO, so pricing on the inc-GST number would quietly eat into your margin.
Three things move the price: how long the service takes, what you pay for the chair, and what product it burns.
Service timeLabour and overhead both scale with the minutes. Double the chair time and you roughly double the cost to deliver — which is why colours price so far above cuts.
Product costA dry cut is a dollar or two; a colour with foils and treatment is $20 or more. Cost the product actually used per service, not a flat average across the menu.
Wage, overhead & marginThe stylist wage and chair overhead set the hourly cost; the target margin turns cost into price. Nudge any of them and watch the ex-GST price and the profit in dollars move together.
A few habits keep pricing honest across the whole menu, not just one service.
Time every servicePrice each service on its real chair time, not a rough guess. A five-minute error on a service you do twenty times a day adds up fast across a week.
Cost the product usedWeigh or track colour and product per service so the figure reflects reality. Over-dispensing is where colour margins quietly leak.
Price the whole menuRun every service through the same method so cuts, colours and treatments each carry their own margin — then review the mix that actually sells.
Service pricing is one lever. Model the rest of the business alongside it.
The full marginTurn service prices into an overall profit margin.
Profit margin calculator → Your hourly rateWork out the charge-out rate your chair needs.
Charge-out rate calculator → Get the GST rightAdd or strip 10% GST on any figure.
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Pricing a women's cut ≈ $45 ex-GST
A 45-minute women's cut costs about $35.75 to deliver — $22.50 labour (a $30/hr stylist for three-quarters of an hour), $11.25 of chair/overhead and ~$2 of product. To keep a 20% margin you'd price it at about $44.69 ex-GST, or roughly $49 on the menu with GST. Real salon menus range $60–120 depending on stylist seniority and location, so this is a floor to protect your margin, not a ceiling.
| Cost to deliver | $35.75 |
|---|---|
| Price ex-GST | $44.69 |
| On the menu | ~$49 inc-GST |
- Senior stylist Charge more
- Menu range $60–120
Pricing a full-head colour ≈ $138 ex-GST
Colour ties up a chair. A two-hour full-head colour costs about $110 to deliver — $60 labour, $30 overhead and ~$20 of product — so at a 20% margin it should be about $137.50 ex-GST, or $151 with GST. That's why colour services carry the price they do: it's the time on the chair, not just the tube of dye. Long services are where under-pricing quietly kills a salon's profit.
| Time | 120 min |
|---|---|
| Cost | $110 |
| Price ex-GST | $137.50 |
- Chair time The real cost
- Inc-GST $151.25
Pricing a men's cut ≈ $29 ex-GST
A 30-minute men's cut costs about $23.50 to deliver ($15 labour, $7.50 overhead, ~$1 product), pricing to about $29.38 ex-GST at a 20% margin — say $32 on the menu. Shorter services turn the chair over faster, which is why barbers and men's grooming can run on lower ticket prices but higher volume. The margin still has to be there on every cut, or the fast turnover just loses money quicker.
| Time | 30 min |
|---|---|
| Cost | $23.50 |
| Price ex-GST | $29.38 |
- Fast turnover Lower ticket ok
- Still need The margin
Pricing to a target margin cost ÷ (1 − margin)
To hit a margin, divide the total cost by one minus the margin. A service costing $70.50 (a cut + blow-dry) at a 30% margin should sell for 70.50 ÷ 0.70 = $100.71 ex-GST. Higher margins need higher prices for the same cost — a 20% margin on that service is only about $88. Set the margin to what your salon needs to cover rent, retail slow periods and profit, then let the formula set the floor price.
| Cost $70.50 @ 30% | $100.71 |
|---|---|
| Same @ 20% | $88.13 |
| Formula | cost ÷ (1−margin) |
- Higher margin Higher price
- Covers Rent + profit
Where GST fits in salon pricing Price ex-GST, add 10%
Do your costing and margin ex-GST, then add 10% for the menu price your client pays. A colour priced at $137.50 ex-GST becomes $151.25 on the menu. The $13.75 of GST isn't yours — you remit it to the ATO — so never count it in your margin. Salons must register for GST once turnover passes $75,000, which most established salons do, so pricing GST-inclusive from the start avoids nasty surprises at BAS time.
| Ex-GST | $137.50 |
|---|---|
| Inc-GST menu | $151.25 |
| Register at | $75k turnover |
- GST Not your margin
- Menu Shows inc-GST
Cost-plus vs margin pricing Two ways to the same goal
Cost-plus multiplies your cost by a markup (a $35.75 service at 100% markup is $71.50), while margin pricing divides by one-minus-margin. They're just two lenses on the same decision: a 100% markup equals a 50% margin. Margin pricing is usually clearer for a service business because it tells you directly what share of each sale you keep. Whichever you use, the input that matters most is an honest, complete cost — including product wastage and the time between clients.
| 100% markup | = 50% margin |
|---|---|
| $35.75 × 2 | $71.50 |
| Key input | Honest cost |
- Margin view Clearer for services
- Include Wastage + gaps
Worked examples
| Inputs | Suggested price (ex-GST) | Note |
|---|---|---|
| 45 minutes, stylist 30 an hour, overhead 15, 20% margin | $42.19 | 42.19 ex-GST |
FAQFrequently asked questions
What wage and overhead should you use?
The price is only as good as the two hourly inputs behind it. These are 2026 planning baselines — always swap in your own numbers: Stylist wage — ~$30/hr . A rough all-in cost for a qualified hairdresser's chair time. A senior stylist or a commission split lifts it; a junior or apprentice sits lower. Chair / overhead — ~$15/hr . Rent, power, laundry, front desk, insurance and general consumables spread across each productive chair hour. Busy salons in high-rent locations run higher. Product & consumables — per service . A dry cut might be a dollar or two; a full colour with foils and treatment can be $20 or more. Cost the product actually used, not an average. The single biggest error in salon pricing is treating every service as if it takes the same time and uses the same product. It doesn't — a colour ties up a chair for hours and burns real product, while a men's cut is in and out in 25 minutes. Time each service honestly and cost its product, and the margin looks after itself. GST, margin & markup
How much should I charge for a haircut?
Start from what the service costs you to deliver, then price up to your margin. A 45-minute women's cut with a stylist on about $30/hr and roughly $15/hr of chair and overhead costs around $22.50 in labour, $11.25 in overhead and a couple of dollars of product — about $35.75 all up. At a 20% profit margin the ex-GST price is 35.75 ÷ (1 − 0.20) = about $44.69, which is roughly $49 once you add 10% GST for the menu. A men's cut runs 20–30 minutes so it costs less to deliver and sits lower. The maths gives you the floor; your local market sets what you can actually charge.
How do I price a salon service?
Add up the cost to deliver the service — labour (stylist wage × service time), chair and overhead (overhead rate × service time) and product and consumables — then divide by one minus your target margin to get the ex-GST price: price = (product + labour + overhead) ÷ (1 − margin). Work everything ex-GST, then add 10% GST for the menu price you display. The two biggest levers are service time and product cost, so an accurate minute count and a real product figure matter more than anything else.
How much does it cost to deliver a colour?
Colours are long and product-heavy, which is why they cost far more to deliver than a cut. A two-hour full colour with a stylist on about $30/hr is roughly $60 in labour plus about $30 of chair and overhead at $15/hr, and colour, foils and developer can easily run $20 or more — around $110 to deliver. At a 20% margin that's about $137.50 ex-GST, or roughly $151 on the menu with GST. Because the product and the chair time are both high, timing the service accurately and costing the actual product used are the difference between a colour that makes money and one that quietly loses it.
How does GST affect salon prices?
If your salon is registered for GST, the 10% you add to the menu price isn't yours to keep — you remit it to the ATO. So you should price to your margin on the ex-GST figure, then add GST on top for the price you display. A service you've priced at $44.69 ex-GST goes on the menu at about $49.16 inc-GST. Registration is compulsory once turnover reaches $75,000, and most established salons are over that. If you're not registered, the menu price and the ex-GST price are the same and you don't add the 10%.
What profit margin should a salon aim for?
Profit margin here is what's left after the direct cost of delivering the service — labour, chair overhead and product — before your fixed costs like rent, front-desk wages and marketing. A 15–25% service margin is a common planning range, with busy salons and premium services sitting higher. Remember this is a per-service margin, not net profit: rent and the costs that don't scale with each client still come out of it. Set a target you can defend against your local market, price every service to it, and review the mix — cuts, colours and treatments carry very different margins. 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.