Revenue Per Service Hour
It is how much revenue each hour of actual service time generates — not admin or gap time.
Formal definition
Revenue per service hour equals total service revenue divided by the number of hours providers spent delivering services in the period.
Why it matters
Salons, clinics, and spas live on chair productivity; low revenue per hour means providers are busy but not earning.
Where you see it
- Salon and spa management software
- Dental production reports
- Med-spa KPI dashboards
- Franchise performance reviews
- Service business profitability coaching
Worked example
- Service revenue: $42,000.
- Service hours delivered: 600.
- Revenue per service hour = $42,000 ÷ 600 = $70.
- Interpretation: Each hour of service time generated $70 in revenue.
How Business metrics calculates it
Revenue ÷ Served service hours.
Where people fool themselves
Revenue per hour using scheduled hours instead of served hours counts no-shows as productive. Served is the honest denominator.
Run it on your own numbers: the Professional & Wellness calculator.