Restaurant Labor Cost Calculator
Add up your labor and enter your sales to get your labor cost percentage instantly — with a benchmark for your restaurant type and optional prime cost.
Your numbers
Labor costs
- Enter revenue to calculate labor cost percentage.
Results
- Total labor cost
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Labor cost percentage is your total labor cost divided by revenue for the same period. Most restaurants aim for 25–35%, depending on segment and service style.
How to calculate labor cost percentage
- Total your labor. Add hourly and salaried wages, payroll taxes, benefits and overtime for the period.
- Enter revenue. Use net sales for the same period — the week, month or quarter you are measuring.
- Divide. Labor cost % = total labor ÷ revenue × 100.
- Compare. Check the result against the benchmark for your restaurant type.
Worked example
Casual dining: $15,000 labor on $50,000 in sales is a 30% labor cost — on target for casual dining.
Prime cost: Add $15,000 in food cost and prime cost is $30,000, or 60% of sales — right at the full-service target.
Labor cost FAQ
What is a good labor cost percentage for a restaurant?
Most restaurants target 25–35% of sales: roughly 25% for quick service, 25–30% for casual dining and 30–35% for fine dining, where service is more labor-intensive.
How do I calculate labor cost percentage?
Divide total labor cost by revenue for the same period and multiply by 100. For $15,000 of labor on $50,000 in sales: 15,000 ÷ 50,000 × 100 = 30%.
What is included in labor cost?
Hourly and salaried wages, payroll taxes, benefits, overtime, bonuses and paid time off — not just take-home pay.
What is prime cost?
Prime cost is your labor cost plus cost of goods sold (food and beverage). Full-service restaurants generally aim to keep prime cost at or under 60% of sales.
How can I lower my labor cost percentage?
Schedule to forecasted demand, cross-train staff, cut avoidable overtime, and reduce kitchen waste so each labor hour produces more sellable product.
Is this calculator free?
Yes — it runs entirely in your browser, needs no account, and your numbers never leave your device.
Labor is only half of prime cost.
MiseKit shows the other half — the money your kitchen loses to over-trimming, shrink and write-offs, ranked by item.
See how MiseKit works