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AU Business Analysis

Beauty & Nail Salon ROI Calculator

Model beauty, nail and skincare salon economics.

Beauty salons combine treatment services with retail. Equipment (laser, IPL, microdermabrasion) adds revenue but also capex and maintenance.

Wages % of revenue
35–48%
Typical range
Rent % of revenue
8–14%
Typical range
COGS % of revenue
8–15%
Typical range
Net margin %
10–18%
Healthy band

Sources: IBISWorld — Hairdressing and Beauty Services

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1

Business Details

2

Revenue

3

Annual Expenses

4

Purchase & Loan

5

Owner Details

Owner salary already in expenses?
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6

Scenario Testing

Sales Drop0%
Rent Increase0%
Wage Increase0%
Interest Rate Rise0pp
Live Analysis

Beauty/Nail

Beauty Salon · benchmarks: Australian industry data

HealthyLow Risk
Net Profit
$58,900
Margin 14.4%
EBITDA
$133,900
Before owner & loans
ROI
53.5%
Payback 1.9 yrs
DSCR
2.94
Debt cover ratio
Monthly Repayment
$3,801
$45,609 p.a.
Cashflow After Loan
$13,291
Break-even Revenue
$391,497
$7,529/week
Owner Earnings
$133,900
Profit + replacement salary

Investment Risk Score

100/100
Low Risk

Higher score = safer investment

Revenue Breakdown

  • COGS9.3%
  • Wages37.8%
  • Rent9.3%
  • Other29.3%
  • Net Profit14.4%

Industry Benchmarks · Beauty Salon

vs Australian averages
Wage RatioHealthy
37.8%
Benchmark: 35%–48%
Rent RatioHealthy
9.3%
Benchmark: 8%–14%
COGS RatioHealthy
9.3%
Benchmark: 8%–15%
Net MarginHealthy
14.4%
Benchmark: 10%–18%

Loan Repayment Projection

Outstanding balance over loan term

Insights

Strengths
  • • Net margin 14.4% is within healthy range for Beauty Salon.
  • • Strong ROI of 53.5% relative to asking price.
  • • DSCR of 2.94 indicates comfortable loan serviceability.
Weaknesses
  • No major weaknesses detected.
Red Flags
  • No red flags.
Buyer Questions
  • • Can you provide 3 years of tax returns and BAS statements?
  • • What is the remaining lease term and rent review schedule?
  • • Are there any key staff dependencies or pending resignations?
  • • How transferable are supplier and franchise agreements?
  • • Why is the current owner selling?
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General information only. This calculator provides general information only and does not take into account your personal circumstances, financial situation, objectives, taxation position, or business needs. Please seek independent professional advice before making financial or business decisions.

What makes a healthy Beauty/Nail business?

Service revenue is people-dependent. Therapist turnover hurts client retention more than in hair salons because trust takes longer to rebuild.

High-ticket treatments (laser, injectables under script) need qualified operators — staffing constraints can cap growth.

Recurring memberships and packages smooth revenue and improve client lifetime value.

Typical asking-price multiple

1× – 2× SDE (Seller's Discretionary Earnings). Cosmetic clinics with prescriber relationships can reach 2.5–3×.

Red flags
  • • Laser/IPL equipment older than 5 years without service log
  • • Single qualified therapist for high-margin services
  • • No package or membership offering
Green flags
  • • Strong membership / package penetration
  • • Multi-disciplinary therapists (cross-trained)
  • • Equipment under warranty / service contract
Key due-diligence questions
  • 1. What's the service-vs-retail mix?
  • 2. What are the equipment ages and service history?
  • 3. What's the package/membership revenue?

Frequently asked questions