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How Much Does It Cost to Open a Nail Salon? Budget Smarter, Polish Faster

How Much Does It Cost to Open a Nail Salon? Budget Smarter, Polish Faster


Rosheen Ahner

Published July 15, 2025

Updated July 14, 2025

Thinking about opening a nail salon? If you’re picturing a chic, minimalist space in the city or a cozy set up in your hometown, knowing how much it costs to open a nail salon is the first (and smartest) first step. This guide will break down a formula-based approach to estimating your startup costs, so you can plan with confidence and skip the sticker shock.

The Magic Formula: Your Nail Salon Budget Calculator

When it comes to finding your nail salon budget, it all boils down to this go-to formula:

Total Cost = Fixed Costs + Variable Costs + Unexpected Costs + Working Capital

Let’s break it down:

Fixed Costs: Nail Salon Startup Costs

Think of these costs as your “getting started” expenses. They are your one-time set up costs to open the doors to your nail salon.

They include big-ticket items like rent, equipment, licensing, and renovation work. So, if you choose to move into an existing nail salon, this cost might be much lower than expected since you won’t need to do plumbing work. Or it could be much higher if you choose a blank space to customize your nail salon.

Nail Salon Location Costs

Your nail salon space is the foundation of your business. Finding the right space for your nail salon that checks all your boxes is key to starting on the right foot. Look for something with visibility, ample parking, and enough room for pedicure stations, manicure tables, and a front desk.

Once you’ve found a space that works for you, here’s how you’d calculate your location cost:

Location Investment = (Deposit + First Month’s Rent) + Renovation Costs

Here's an example:

  • Monthly rent: $2,500
  • Security deposit: $2,000
  • Renovations: $15,000
  • Total Location Investment: $19,000

Pro Tip

Nail salons often require specific plumbing and ventilation. Make sure to get multiple contractor quotes for renovations and that they are familiar with beauty industry standards. Costs can vary dramatically based on your location and work needs.

Nail Salon Equipment & Furniture

Investing in the right nail salon equipment is crucial for providing high-quality services for your clients. But what you choose to stock your nail salon depends on which services you are going to provide. Are you offering gel nails? Deluxe pedicures? Considering adding other beauty services in the future? Here’s the general cost breakdown:

Basic Equipment Cost = (Nail Stations) + (Pedicure Chairs) + (Drying Lamps) + (Storage & Tools)

Example for a 4-station nail salon:

  • 4 manicure stations ($400 each): $1,600
  • 3 pedicure chairs with tubs ($1,400 each): $4,500
  • Drying lamps and UV/LED lights: $800
  • Tool sterilizers, carts, storage: $1,000
  • Total Equipment Cost: $7,900

Licensing & Permits for Nail Salons

To open your own nail salon, you’ll need specific licenses to legally operate. These costs will vary depending on your state regulations. Budget around $2,000-$2,500 a year for:

  • Business License: This is a general license to operate a business in your city or country.
  • Cosmetology License or Nail Technician License: Required for anyone providing nail services, ensuring they meet professional standards.
  • Health Department Permit: Ensures your salon meets health and safety standards.
  • Retail License (if selling products): Required in certain states to sell retail products to your clients.
  • Zoning Permit: Confirms that your salon location is zoned for commercial use.

Insurance

One of the less glamorous requirements for opening your salon is to protect yourself and your business from various risks. The cost can vary, but you should budget around $500 to $1,000 a year for insurance. Essential types include:

  • Liability Insurance: Covers accidents and injuries that may occur on your premises.
  • Property Insurance: Protects your nail salon equipment and furniture from damage or theft.
  • Workers’ Compensation Insurance: Required if you have employees covering work-related injuries.
  • Business Interruption Insurance: Covers lost income if your nail salon has to close temporarily due to unforeseen events.

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Variable Costs: Monthly Operating Expenses

Once your nail salon is up and running, the costs to operate the business will repeat every month to keep the lights on. Here’s how to calculate your variable monthly expenses:

Monthly Operating Costs = Staff Wages + Inventory + Utilities + Software Subscriptions + Marketing

Staff Costs for a 4-Station Nail Salon

Depending on your payroll model (booth rental, commission, or hourly), staff costs can vary. Let’s break down how a general nail salon staff can look on paper:

Pro Tip

Be sure to check your local average wages when setting up your nail salon budget to ensure you pay your employees a wage that suits their experience and industry standards.

Example:

  • 4 nail techs (commission-based): Variable
  • 1 front desk receptionist ($15/hr, 40 hrs/wk): $2,400/month
  • Payroll taxes & benefits (~20%): $480/month

Nail salons often scale with part-time and freelance techs. Stay flexible when hiring your team and building your brand for quick growth!

Nail Product Inventory & Supplies

Gel polish, tips, sanitizers, oh my! The list of inventory items you need to run the nail salon smoothly is long and can be difficult to monitor regularly. With Vagaro’s inventory management, purchase orders are generated based on your average product sales, taking the guesswork out of reordering.

If you’re just starting out, purchasing a starter kit is a great way to stock up on essential retail products. As your business grows, you’ll want to track usage and sales to maintain the right inventory levels each month. Use this formula to estimate your monthly needs:

Monthly Inventory = (Avg. Services per Month x Avg. Product Cost)

Example:

  • Acrylic supplies (150 clients x $5): $750
  • Gel polish refills and removers: $1,200
  • Lotions, oils, spa materials: $700
  • Nail art supplies & tools: $500
  • Retail starter kit (cuticle oils, lotions, files): $300
  • Total: $3,450/month

By reviewing your sales and product usage reports, you can accurately estimate how much inventory to maintain each month.

Utilities

Utilities are ongoing expenses that are crucial for keeping the lights on in your nail salon…literally.

Sometimes utilities will be included in your lease agreement, but if you’re purchasing a space to convert to a salon, this would be out of your pocket. When looking for a location for your nail salon, make sure you ask about utilities and how they’re distributed.

Generally, water and electricity usage run high in nail salons because of the pedicures, hot towels, sterilizers, and constant lighting. Try to budget around $500-$600/month for:

Pro Tip

The cost of utilities varies depending on usage and where you are located, these numbers are just rough estimates.

Marketing & Advertising

Marketing and advertising help you bring in new clients and keep the ones you already have. Industry experts recommends spending 7-10% of your revenue on marketing and advertising. This gives enough budget to grow your business while making sure your investment pays off.

On average, you’ll see a 5:1 return, meaning for every $1 you spend on marketing, it brings back $5 in revenue.

Here’s a real example: Let’s say your nail salon makes $245k per year. If you invest 5% of that into marketing:

  • You’d spend: $12,250 per year on advertising
  • You’d gain: $49,000 in additional revenue
  • Your growth: 15% increase in annual revenue.

Studies show most successful companies grow between 10-25% per year. At 15% growth, you’d be right in the sweet spot. Bottom line? Marketing is an investment that can significantly increase your nail salons revenue and growth.

Strategies to include:

  • Instagram reels and TikToks of nail art
  • Loyalty programs
  • Text and email campaigns
  • Google Ads and Yelp promotions
  • Referral discounts

The salon software you choose can help manage your marketing efforts and track the effectiveness of your campaigns. Vagaro’s automated marketing tools can help you stay on top of promotions – even when you’re fully booked! Now let’s dive into areas that will keep your revenue safe.

Unexpected Costs: Your Safety Net

Every business faces curveballs at some point. Having a safety net saved for unexpected times could make or break your business. Whether it’s a broken pedicure jet or last-minute permit delays, here’s how to calculate the security for your business:

Emergency Fund = (Fixed Costs + 6 Months of Variable Costs) x 15%

Example:

  • Startup costs: $50,000
  • Monthly expenses: $8,000
  • Emergency fund: $50,000 + ($8,000 x 6) = $98,000 x 0.15 = $14,700

Working Capital: Staying Afloat

Nail salons typically take 6-12 months to turn a consistent profit, and you’ll need working capital to keep the business afloat while building out your client list. Use this formula to calculate your working capital:

Working Capital = Monthly Operating Costs x 6 Months

If your monthly costs are $8,000, your working capital should be $48,000.

Planning for Profit: Estimating Costs and Revenue

Estimating costs and revenue is essential to create a successful business plan. Here’s how the numbers from the examples provided stack up:

Startup Costs Estimate:

  • Location: $19,000
  • Equipment: $7,900
  • Licensing & Insurance: $3,000
  • Emergency Fund: $14,700
  • Working Capital: $48,000
  • Total Estimate: ~$92,600

By carefully estimating these costs and revenue, you can create a comprehensive business plan and ensure your salon’s profitability.

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Funding Your Nail Salon: Exploring Options

After going through this exercise and determining the grand total necessary to open a nail salon, you may be thinking, “where am I going to come up with that amount?” Lucky for you, it doesn’t have to be 100% self-funded, and there are plenty of options to get your dream business off the ground.

Let’s talk about funding. Securing the necessary funding is your next critical step in covering nail salon startup costs. There are several options available to aspiring nail salon owners:

  • Personal savings: Using personal savings to fund the start-up costs of a salon can be a good option for those who have the money. It allows for full control over the business without the need to repay loans or share profits.
  • Small business loans: Small business loans can provide the necessary funding for a salon but may require a good credit score and a solid business plan. These loans can be obtained from banks or specialized financial institutions.
  • Investors: Investors can provide funding for a salon in exchange for a share of the business. This option can be beneficial for those who need significant capital and are willing to share ownership.
  • Crowdfunding: Crowdfunding platforms can be used to raise funds for a salon from a large number of people. This method can also help build a customer base and generate buzz before the salon opens.
  • Salon financing companies: Some companies specialize in financing salons and can provide funding for equipment, inventory, and other start-up costs. These companies understand the unique needs of the beauty industry and can offer tailored financial solutions.

Looking for a flexible option? Vagaro Capital offers funding from $1,000 to $300,000 to stock up on inventory, upgrade your chairs, or launch a second location. No credit checks, just sales-based qualification.

It’s essential to carefully consider the options and choose the one that best fits your needs and financial situation. Each financing method has its pros and cons, and the right choice will depend on your specific circumstances and business goals.

Business Loans and Financing

Business loans and financing are available to nail salon owners who need funding to start or grow their business. You can apply for loans from banks, credit unions, and online lenders. Common types of loans for salons include:

  • Term loans: Lump sum loans repaid over a fixed period.
  • Line of credit: Flexible borrowing up to a certain limit.
  • Invoice financing: Advances on outstanding invoices.
  • Equipment financing: Loans specifically for purchasing salon equipment.

Consider alternative financing options, such as:

  • Crowdfunding: Platforms like Kickstarter and Indiegogo.
  • Investors: Private investors or venture capitalists.
  • Grants: Funding from government agencies or non-profits.

Make sure to carefully review the terms and conditions of any loan or financing option before applying to ensure it fits your business needs.

Insights for Your Nail Salon Business

Opening a nail salon is a big step, but with the right formula, it’s a manageable one. Remember, the more detailed your nail salon budget and plan, the higher your chances of success! Use this guide as your roadmap, and don’t hesitate to adjust numbers based on your unique situation and location.

Want to make managing your new nail salon easier? Vagaro helps you simplify nail salon management while letting you focus on what you love—creating enchanting nail designs!

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