Money tools

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Service profitability

One service, one honest estimate. What's left after direct costs, and what it earns per booked hour.

Gross profit per booked hour — Full highlight

$62.67

Estimate before general overhead and tax set-aside — not take-home pay

Service revenue (client pays)
$220.00
Direct service costs you pay
- $32.00
Approximate gross profit
$188.00
Revenue per booked hour
$73.33
Gross profit per booked hour
$62.67

A higher-priced service isn't always your most profitable service. What matters is what remains after direct costs and how much booked time the service uses. This is an estimate of gross profit (85% of the price) — it is not take-home pay, because rent, overhead, card fees and taxes still come out of it.

Mentor note

Run your five most-booked services through this and line them up. The order usually looks nothing like your menu price list.