Hairdressing Pricing Calculator

Section 1: Determining your ideal hourly rate on last years’ costs.

1. Set Financial Targets: Input your desired gross annual income (before paying income tax) and the superannuation rate to define your financial goals for the year.
2. Detail Your Operating Costs: Use the provided fields to enter your recurring expenses such as rent, utilities, colour supplies, and other professional products. Specify the amount and frequency (monthly, quarterly, yearly) for each.
3. Work Schedule: Fill in the number of days you work per week, the hours you work per day, and your holiday days per year to calculate total billable hours.
4. GST Registration: Select whether you are GST registered. This affects how GST is calculated in relation to your services.
5. Calculate Your Needs: Press the “Calculate Financials” button to see:
   – The hourly rate you need to charge to meet your financial targets.
   – The total annual operating costs based on your inputs.
   – GST collected per hour (if registered) and your annual superannuation contribution.
6. Evaluate Results: Review the calculated hourly rate and other financial details. Adjust your inputs as necessary to explore how changes affect your required hourly rate and overall financial plan.

Section 2: Determining your services price based on new operating costs.

1. Update Operating Costs: Enter your new total annual operating costs to reflect any changes in your business expenses. Hint: you can use the calculator in Part 1 to add up all your new costs and enter those in the Operating Costs total in Part 2.
2. List Your Services: For each service you offer, provide the service name, how long it takes (duration), and the current price (old price). If you have multiple services, add each one using the “Add Service” button.
3. Calculate Adjustments: Click on “Calculate Adjustments” to see how much you should adjust your prices. The tool will calculate:
   – The new price for each service to cover the increased costs.
   – The percentage increase (or decrease) from your old prices.
4. Evaluate New Pricing: The tool displays the adjusted price for each service alongside the percentage change. This helps you understand how much more (or less) you’ll need to charge for your services to maintain or improve your profit margins in light of the new operational costs.
5. Make Informed Decisions: Use the insights from the calculated adjustments to decide if and how you want to implement the new pricing. Consider how these changes might affect your clientele and business competitiveness.