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The Fennec Lab

Personal-services operator economics

Salon Operations Calculators

Operator economics for salons and stylists — chair-rental vs. commission comparison under IRC § 1401 SECA and IRC § 3101 FICA, with worker-classification trap warnings under Rev. Rul. 87-41 and the California AB 5 ABC test.

Anchored to: IRC §§ 1401, 1402, 3101, 3111; Rev. Rul. 87-41; CA Labor Code § 2775 (AB 5)

5 calculators live. Reviewed against current statute and regulation. Last updated 2026-05-16.

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IRC § 1401 (Self-Employment Contributions Act rates: 12.4% OASDI + 2.9% Medicare = 15.3%)

Salon Chair Rental vs. Commission Calculator

Compare a stylist's after-tax annual take-home under the two dominant salon compensation models: chair rental (1099 self-employed under IRC § 1401 — Schedule C net income, 15.3% SECA tax with the 92.35% multiplier under IRC § 1402(a)(12), Schedule C deductions for supplies and chair rent) and commission split (W-2 employee under IRC § 3121 — 7.65% FICA employee half, employer match under IRC § 3111, no Schedule C deduction for supplies under TCJA 2017). Surfaces the break-even monthly service revenue and flags worker-classification traps under the federal Rev. Rul. 87-41 20-factor test and the California AB 5 ABC test (CA Labor Code § 2775).

Constant-margin LTV perpetuity formulation (Σ rⁿ = 1 / (1 − r) for r in [0

Stylist Clientele LTV Calculator

Compute lifetime value per client for a single stylist or chair using the constant-margin perpetuity form: LTV = (avg ticket × visits/year × gross margin) / (1 − retention). Models service economics (ticket × rebook cadence × service margin), retail-attach economics (attach rate × retail margin), expected client tenure (1 / churn), and total revenue per client over tenure. Compares output against Modern Salon and Salon Today industry-benchmark bands so the operator can see whether the book is below, in, or above industry norms.

Keystone markup convention (2 × landed cost

Salon Product Margin Calculator

Compute the recommended retail price and gross margin for a salon retail SKU against the industry-standard 50% to 60% margin band for professional haircare retail. Models the keystone markup (2 × landed cost), the target-margin solve (landed / (1 − target)), and the MSRP comparison so the operator can see what each pricing scenario gives up against the manufacturer-suggested retail price. Adjusts for freight per unit and breakage allowance.

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How these calculators are maintained

Every YMYL calculator is reviewed quarterly and after every legislative session in the jurisdiction it covers. Citations are link-validated monthly against the relevant statute and regulation websites. The methodology page documents the discipline.

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