A hair salon is typically worth 1.5 to 2.5 times the owner's true annual earnings (seller's discretionary earnings, or SDE), or about 0.35 to 0.65 times yearly revenue, based on BizBuySell's closed-sale data. A salon where the owner takes home $60,000 a year once add-backs are counted would usually price between $90,000 and $150,000.
Last updated: October 11, 2026
SDE is the owner's salary, plus profit, plus the personal and one-time expenses the salon pays for. It is the number buyers and lenders price a salon from, and it is almost always higher than the profit line on the tax return.
| Owner's true annual earnings (SDE) | Typical sale price |
|---|---|
| $40,000 | $60,000 to $100,000 |
| $60,000 | $90,000 to $150,000 |
| $80,000 | $120,000 to $200,000 |
| $100,000 | $150,000 to $250,000 |
| $120,000 | $180,000 to $300,000 |
Source: BizBuySell, Business Valuation Multiples by Industry (closed sales).
A revenue multiple is a rougher check, useful when the owner's true earnings are not yet worked out. Two salons with the same sales can have very different earnings, so the SDE figure is the one to trust.
| Annual revenue | Typical sale price |
|---|---|
| $150,000 | $53,000 to $98,000 |
| $250,000 | $88,000 to $163,000 |
| $400,000 | $140,000 to $260,000 |
Source: BizBuySell, Business Valuation Multiples by Industry (closed sales).
Across all industries, the IBBA Market Pulse survey (Q4 2025) puts the median for businesses selling under $500,000 at 2.0 times SDE. BizBuySell's Q1 2026 Insight Report puts the average cash flow multiple across all reported sales at 2.7 times. Salons sit toward the lower end of main street because the client relationship is often personal to the owner and stylists.
YourBizWorth is not a broker, appraiser, or law firm. This guide is general information, not legal, tax, or lending advice.
Not necessarily. Booth rent is steady income a buyer can see in signed agreements, which supports the price. What matters is the owner's true earnings and whether the renters plan to stay after the sale.
Only if it earns little beyond paying the owner a wage. A salon with steady clients and real earnings sells as a going business, priced from SDE, which is usually well above what the chairs and dryers would fetch on their own.
Use the free salon calculator on YourBizWorth for a range in about a minute. For a number a buyer's bank will accept, it needs to be built from your tax returns.