Under a commission model, stylists are W-2 employees and earn a percentage of their service revenue (typically 40-50%). The salon controls pricing, scheduling, and products. Under booth rental, stylists are independent contractors who pay a fixed weekly or monthly rent for their chair, set their own prices, and keep all their revenue. Each model has different risk, income, and management implications.

It depends on chair count, occupancy, and local market conditions. Commission gives you more revenue per service but higher overhead and management burden. Booth rental provides predictable income and lower management complexity but caps your upside per chair. The calculator models both with your specific numbers — the answer varies significantly by market and chair utilization.

Add up all your fixed monthly costs: rent, utilities, insurance, supplies, software, and any staff you pay regardless of revenue. That total is your break-even revenue. Divide by your average ticket and service hours to see how many services per day you need to cover costs. The calculator does this automatically.

Booth rental rates vary widely by market — $150-400/week in most mid-sized cities, higher in major metros. A common approach is to calculate 40-45% of an average stylist's weekly gross revenue as a benchmark, then set a rate that works for both parties. The calculator lets you model what rate makes the business work at different occupancy levels.