{
  "slug": "booth-rent-vs-commission",
  "title": "Booth Rent vs Commission Calculator",
  "heading": "Booth Rent vs Commission Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/booth-rent-vs-commission",
  "summary": "Compare take-home pay under booth rent versus commission structures.",
  "description": "Stylists switching from commission to booth rent (chair rental) often underestimate the revenue needed to break even once they're covering their own product, supplies, and downtime. This calculator takes your monthly service revenue, the commission split a salon would offer, and the weekly booth rent an independent arrangement would cost, then compares net take-home under both models. It backs out product cost as a percentage of revenue since booth renters typically buy their own color and backbar, while commission stylists usually have that covered by the salon. The output shows the revenue crossover point — the monthly revenue level where booth rent starts winning — so you can judge which model fits your current client base and growth trajectory before you commit to a lease or contract change.",
  "formula": "Commission net = revenue × commission% − employee product cost. Booth net = revenue − (weekly rent × 4.33) − renter product% × revenue. Breakeven = weekly rent × 4.33 ÷ (commission% − (1 − renter product%)... solved numerically per inputs).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=booth-rent-vs-commission",
  "inputs": [
    {
      "id": "revenue",
      "label": "Monthly service revenue",
      "kind": "number",
      "hint": null,
      "default": 6000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "commissionPct",
      "label": "Commission rate (employee)",
      "kind": "number",
      "hint": null,
      "default": 45,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "employeeProductPct",
      "label": "Salon-covered product cost",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "weeklyRent",
      "label": "Weekly booth rent",
      "kind": "number",
      "hint": null,
      "default": 200,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "renterProductPct",
      "label": "Renter's own product cost",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "otherRenterCosts",
      "label": "Renter's other monthly costs (insurance, supplies)",
      "kind": "number",
      "hint": null,
      "default": 120,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "boothNet",
      "label": "Booth rent net income/month",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "commissionNet",
      "label": "Commission net income/month",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "difference",
      "label": "Booth advantage (or disadvantage)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyRent",
      "label": "Monthly rent cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "crossover",
      "label": "Revenue where booth beats commission",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Monthly service revenue: 6000 $",
      "Commission rate (employee): 45 %",
      "Salon-covered product cost: 6 %",
      "Weekly booth rent: 200 $",
      "Renter's own product cost: 10 %",
      "Renter's other monthly costs (insurance, supplies): 120 $"
    ],
    "outputs": [
      "Booth rent net income/month: $4,414",
      "Commission net income/month: $2,340",
      "Booth advantage (or disadvantage): $2,074",
      "Monthly rent cost: $866",
      "Revenue where booth beats commission: $1,933"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter monthly service revenue ($).",
      "Enter commission rate (employee) (%).",
      "Enter salon-covered product cost (%).",
      "Enter weekly booth rent ($).",
      "Enter renter's own product cost (%).",
      "Enter renter's other monthly costs (insurance, supplies) ($).",
      "Read your booth rent net income/month on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "revenue": 3600,
        "commissionPct": 27,
        "employeeProductPct": 4,
        "weeklyRent": 120,
        "renterProductPct": 6,
        "otherRenterCosts": 70
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "revenue": 6000,
        "commissionPct": 45,
        "employeeProductPct": 6,
        "weeklyRent": 200,
        "renterProductPct": 10,
        "otherRenterCosts": 120
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "revenue": 9600,
        "commissionPct": 72,
        "employeeProductPct": 10,
        "weeklyRent": 320,
        "renterProductPct": 16,
        "otherRenterCosts": 190
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "At what revenue does booth rent usually win?",
      "a": "Most stylists cross over somewhere between $4,500 and $7,000 in monthly service revenue, depending on rent and product costs. Below that, commission's lower fixed risk usually wins; above it, booth rent's 100% revenue capture pulls ahead fast since your only costs are rent, product, and self-employment tax."
    },
    {
      "q": "Does booth rent include product and supplies?",
      "a": "No. Under a true booth rental agreement you are an independent contractor buying your own color, foils, towels, and backbar retail. Salons offering commission typically supply backbar product and sometimes color, which is why the employee product percentage in this calculator is usually lower than the renter's."
    },
    {
      "q": "What about taxes and benefits?",
      "a": "This calculator shows pre-tax net income only. Booth renters pay self-employment tax (15.3% on net earnings) and get no employer-side benefits, so subtract roughly 12-15% more from booth net for an apples-to-apples comparison against a W-2 commission job with benefits."
    },
    {
      "q": "Is booth rent riskier in slow months?",
      "a": "Yes. Rent is due whether you book five clients or fifty, while commission pay scales down automatically with slow weeks. New stylists or those with unpredictable schedules often prefer commission's lower downside even at a lower ceiling."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/salon-stylist-hourly-productivity",
    "https://www.revenuelab.fyi/toolbox/salon-chair-utilization",
    "https://www.revenuelab.fyi/toolbox/salon-employee-vs-independent-contractor-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Booth Rent vs Commission Calculator (https://www.revenuelab.fyi/toolbox/booth-rent-vs-commission)"
}