Labor Cost Percentage Calculator
Labour as a share of sales, and the hours you can afford.
Enter your values
ⓘ Live results
Results
- Labour cost percentage
- 31.4%
- Total labour cost
- $21,350.00
- Verdict
- Over target by 3.4%
- Labour budget at target
- $19,040.00
- Over/under budget
- $2,310.00
- Hours affordable at target
- 892 h
- Sales per labour dollar
- $3.19
Quick answer
Labour cost percentage = total labour cost ÷ sales × 100, where labour cost includes wages, payroll taxes and benefits, not just hourly pay.
Labour % = total labour cost ÷ sales × 100
How to use the Labor Cost Percentage Calculator
- 1Enter sales for the period you are measuring.
- 2Enter wages paid and the payroll burden percentage.
- 3Set your target labour percentage for the sector.
Worked example
Using the values the calculator loads with:
Inputs
- Sales for the period68000 $
- Wages paid17500 $
- Payroll taxes and benefits22 % of wages
- Target labour percentage28 %
- Average hourly rate17.50 $
Results
- Labour cost percentage31.4%
- Total labour cost$21,350.00
- VerdictOver target by 3.4%
- Labour budget at target$19,040.00
- Over/under budget$2,310.00
- Hours affordable at target892 h
- Sales per labour dollar$3.19
Frequently asked questions
What labour percentage should a restaurant run?
Quick service typically 25–30%, full service 30–35%, and fine dining up to 40%. Add food cost and the combined prime cost should stay under 60–65%.
Should owner pay be included?
Include a market-rate wage for any owner working in the business, otherwise the number understates the true cost of running it.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.