← All tools
Wages & on-costs
Are wages quietly eating your profit?
Wages are the biggest cost in almost every salon — and most owners feel they're “too high” without ever putting a number on it. Here's where your total loaded team cost sits against the business-wide ceiling, and what any gap costs.
The numbers you enter
$
All takings: services + retail.
%
Used to also show a service-only payroll ratio.
$
Everyone on the books, before super/on-costs.
%
~12% super + leave/loading + workers comp.
Commission salons run higher and that's normal.
What the numbers mean
Wage-to-revenue ratio
49.2%
At 49.2% of ex-GST revenue, total loaded team wages are above the 45% ceiling. Closing that gap is worth roughly $27,535 a year in profit.
Wage-to-revenue
49.2%
incl on-costs, ex GST
Healthy ceiling
≤45%
total loaded team cost
Service-only payroll
54.7%
wages vs service revenue
Annual profit drag
$27,535
if over the ceiling
How this is worked out
Ratio = all-in wages ÷ ex-GST total revenue. Hourly salons often aim for 35–40%, with 45% the total-team ceiling. The 45% ceiling applies across employed pay models; service-provider payroll alone is ideally lower. Re-check super and on-costs each 1 July.
A working tool, not financial advice. It uses the figures and assumptions you enter — check them against your own numbers and your accountant before any pricing, wage or financial decision. Award and tax figures change (often each 1 July); verify current rates at fairwork.gov.au and ato.gov.au. Shear Profit gives no tax or financial advice.
Want this across your whole business — properly? Run your free Profit Snapshot and we'll show you exactly where the money's going. Matt Grumley, in your corner.
Get your free snapshot