Labor cost percentage calculator

Enter your labor cost and sales for the same period to see your labor percentage, and whether it's in a healthy range.

Total labor cost ($)

Total sales, same period ($)

Frequently asked questions

What is a good labor cost percentage for a restaurant?

Most restaurants target labor at about 25% to 35% of sales, depending on service style. Full-service tends to run higher than quick-service. Above 35% is worth a look at scheduling and pricing; too low can mean you're understaffed.

How do you calculate labor cost percentage?

Divide total labor cost by total sales for the same period, then multiply by 100. Include wages, payroll taxes and benefits for the fullest picture. $9,000 of labor on $30,000 of sales is 30%.

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