Salon commission calculator
Two salons can write down the same commission scheme and pay very different money — because “20% above ₹1,00,000” can mean the part above it, or all of it.
- No sign-up
- Runs in your browser
- Nothing is stored
How is slab-based salon commission calculated?
Two ways, and they pay differently. Band by band, each rate applies only to the money inside its own band, the way income tax works. Or the top rate reached applies to the whole month's billing. The second is simpler to say and creates a cliff: at a threshold, one more rupee billed can be worth thousands. Both are worked out below.
The scheme
Figures before GST. Tax on a bill was never the salon's money — pay commission on the tax-inclusive total and an 18% service costs you 18% more than you meant.
The working
What it pays
- 10% on ₹0.00–₹50,000.00
- ₹5,000.00
- 15% on ₹50,000.00–₹1,00,000.00
- ₹7,500.00
- 20% above ₹1,00,000.00
- ₹4,000.00
- Commission, band by band
- ₹16,500.00
- Fixed salary
- ₹18,000.00
- Total pay this month
- ₹34,500.00
That is 13.8% of what this person billed.
If the top rate is paid on everything
- 20% of ₹1,20,000.00
- ₹24,000.00
- Total pay
- ₹42,000.00
₹7,500.00 more than paying band by band — for the same scheme, written the same way. That gap is why one more rupee billed can be worth thousands at a threshold.
The two ways to read a slab scheme
Band by band — the marginal method — splits the month at each threshold. Someone who billed ₹1,20,000 against 10% from zero, 15% from ₹50,000 and 20% from ₹1,00,000 earns ₹5,000 on the first ₹50,000, ₹7,500 on the next ₹50,000 and ₹4,000 on the last ₹20,000. That is ₹16,500 — not the ₹24,000 that 20% of everything would pay.
Paying the top rate on everything is easier to explain, and it puts a cliff at every threshold. At ₹99,999 this scheme pays 15% of the lot; at ₹1,00,000 it pays 20% of the lot, so one more rupee billed adds ₹5,000 to the wage. Neither method is the right one — both are real choices — but they are worth thousands apart, so the scheme has to say which one it means.
In the product
What Salvoro does with commission
Salvoro does not run slabs, so a banded scheme is worked out here and paid outside the software.
What it pays
- A % or fixed ₹ per service, set per person or per person and service
- After discount, before GST, once the bill is paid in full
- At the rate when earned, so a later raise never rewrites past pay
What it will not pay
- Step up at a threshold: no slabs, no staff targets
- Anything on retail products or membership sales
- Anything on tips, which stay outside the bill total
Common questions
- Should commission be paid on the amount before or after GST?
- Before. GST is collected for the government and was never the salon's money, so paying commission on it hands staff a share of tax you only ever held on the government's behalf — at whatever rate the line carries. Salvoro always uses the value excluding GST.
- Should a discount come off before commission?
- Yes, if commission is meant to track what the salon actually earned — pay on the pre-discount price and a heavily discounted bill can cost more in commission than it brought in. Salvoro spreads a bill's discount across its lines in proportion, then works each line out on what is left.
- Should retail products carry the same rate as services?
- Usually not: a product has a purchase cost that a service does not, so a service rate applied to retail can wipe out the margin on it. Salvoro has no retail rate to set — only service lines earn commission, and products earn none.
- Does a tip count towards commission?
- Not usually — a tip is already the staff member's money rather than the salon's. In Salvoro it cannot count even by accident: a tip sits outside the bill total, the taxable value and revenue reporting, and is paid out separately.
Terms used on this page
A calculator, not tax advice — confirm the rates that apply to you with your accountant. Nothing you type is sent anywhere; the whole calculation runs in your browser. The only exception is the one you make yourself: “Copy link to this calculation” puts your figures into the address, so a link you share carries them.
Free to link to or cite. The address of this calculator is https://www.salvoro.in/tools/salon-commission-calculator — that link carries none of your figures.
More free calculators
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- No-show calculatorWhat empty chairs actually cost over a year, and how much of it a reminder that goes out reliably would give back.
- Utilisation calculatorHow much of your chair time is actually earning, and what an hour of empty chair is costing you per week.
The part that can be automatic, is
Salvoro works out commission from the service lines each person is recorded against, on bills that have actually been paid — after discount, before GST, never from a tip.