In good shape
Labor is 40% of your revenue
hair salons typically run 40–50%, and the best-run sit near 42%.
The math
- $123,200 payroll ÷ $308,000 revenue = 40%
- Typical for hair salons: 40–50%
You're at or below what hair salons typically run. Worth checking you're not short-staffed to the point of turning work away.
Benchmarks are our reviewed figures for hair salons, anchored on the 2022 US Economic Census. See the full hair salon breakdown →
Other calculators for hair salons
- Hair salon profit margin calculatorWhat profit margin should my hair salon be making?
- Hair salon owner salary calculatorHow much should a hair salon owner pay themselves?
- Revenue per stylist calculator for a hair salonHow much revenue should each stylist bring in?
- Hair salon break-even calculatorHow much does my hair salon need to make to break even?
Common questions
- What percentage of revenue should labor be for a hair salon?
- Labor typically runs 40–50% of revenue in hair salons, with the best-run near 42%. Above that range the cause is usually paid hours that aren't producing revenue, not wages being too high.
- Where do these benchmark figures come from?
- Revenue, headcount and revenue per person are measured by the US Census Bureau for this trade's NAICS code. The cost structure comes from our reviewed profile for hair salons. Every figure on this page shows the arithmetic behind it, so you can check it against what you know.
- Do I have to sign up to use this?
- No. The calculator runs entirely in your browser and nothing you type is sent anywhere. The free 90-second audit at the bottom of the page does the same comparison against your live website and local market, and that one is also free with no account.