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How Much Does It Cost to Open a Hair Salon?

By Delta Capital GroupUpdated November 3, 20263 min read

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Opening a hair salon usually costs about $50,000 to $130,000 for a basic shop. A high-end salon built from scratch can cost $250,000 to $500,000 or more. Buying an existing salon is often cheaper, at roughly $40,000 to $250,000. The build-out and the stations, chairs and shampoo bowls are the biggest costs.

Total cost to open a hair salon

Estimates vary a lot because salons vary a lot. A small shop that takes over a former salon can open near the low end. A new build in a busy area, with custom finishes and more chairs, costs far more. Plumbing for shampoo bowls is a big part of any build-out, which is why former salon spaces are worth looking for.

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Startup costs by item

ItemTypical cost
Rent deposit$4,500 to $10,000
Leasehold improvements$15,000 to $35,000+
Equipment and furniture$10,000 to $100,000
Initial supplies$8,000 to $10,000
Retail product inventory$4,000 to $10,000
Licenses$2,500 to $4,000
Marketing for opening$5,000 to $8,000

Equipment estimates range widely because a few chairs and dryers cost far less than a full high-end salon setup.

Monthly operating costs

Monthly costs depend on whether stylists are employees or rent their chairs. One estimate puts total monthly operating costs for a full salon at $30,000 to $40,000, with insurance anywhere from $50 to $1,000 a month.

How much a hair salon makes

Margins are tight. Industry estimates put the average salon profit margin around 8%, with well-run salons at 10% to 15%, and owners typically earning $40,000 to $80,000 a year. Retail product sales and booth rental can both help margins.

Licenses and permits

  • Cosmetology license for every stylist
  • Salon or establishment license, in many states
  • Business license
  • Health and safety permits
  • Certificate of occupancy

Ways to lower your startup costs

  • Lease a space that was already a salon to save on plumbing
  • Buy an existing salon instead of building new
  • Rent chairs to independent stylists to cover rent
  • Lease equipment through beauty-supply vendors
  • Start with fewer stations and add as you grow

How to pay for a hair salon

Most new owners pay for startup costs with a mix of savings, an SBA loan, equipment financing and sometimes money from family or partners. Lenders that fund brand-new businesses usually want a solid business plan, good personal credit and some of your own money in the deal. See business loans for startups and how to qualify for an SBA loan.

Once you’ve been open at least 6 months and bring in $15,000 or more a month, working capital becomes an option for the things that come up after opening: a slow season, an equipment repair, a second location or extra staff. Delta Capital Group funds businesses from $5,000 to $5,000,000 based mainly on your bank statements, and many clients are funded the same day they’re approved. You can apply online or call (877) 230-1525.

FAQs

How much does it cost to open a small salon?
About $50,000 to $130,000 for a basic salon.

Is it cheaper to buy an existing salon?
Often. Existing salons sell for roughly $40,000 to $250,000 and come with equipment and clients.

What licenses do I need?
Cosmetology licenses for your stylists, a salon license in many states, a business license and health permits.

Can I get funding for a salon?
Yes. See business loans for salons for options.

Sources

Cost ranges are planning estimates from these sources, reviewed November 2026. Actual costs vary a lot by city and setup: Fash, SalonBiz, Zolmi, Boulevard.

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Delta Capital Group, Inc is a direct funder based in Hollywood, Florida. Since 2015 we've funded more than $2 billion for over 20,000 small businesses. About us

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