Understand what a treatment contributes
The selling price is your revenue per treatment. Subtracting staff, product, room, and other entered costs shows the amount available to cover remaining business costs and profit.
Choose your cost method
Select costs per treatment if you already know the staff and room cost of one appointment. Select hourly costs to multiply hourly staff and room costs by the duration of the treatment. Product and other costs are entered per treatment in both methods.
How the calculation works
Treatment contribution equals selling price minus entered costs. Contribution margin equals treatment contribution divided by selling price, multiplied by 100. If the costs are greater than the selling price, the contribution is negative.
For example, a treatment sold for $120 with entered costs of $60 contributes $60, with a contribution margin of 50%. This is not the same as net profit if other business costs remain.
