EFFECTIVE HOURLY RATE
What you keep per hour, counting every working hour.
WHAT IT MEANS
Effective hourly rate takes your income after expenses and divides it by all the hours the business takes — cutting, cleaning, admin, messages, ordering.
THE FORMULA
Effective hourly rate = income after expenses ÷ all hours worked
WHY IT MATTERS
It is the most honest measure of whether the business pays you properly, and the one that exposes unpaid admin.
MEASURE IT
Revenue Per Hour Calculator runs this calculation on your own numbers in under a minute.
RELATED DEFINITIONS
- Revenue Per HourWhat an hour in the shop earns once every hour is counted.
- CapacityThe most clients your schedule can physically hold.
- Chair UtilizationThe share of your available chair time that is actually booked.
Part of Barber Income.