Restaurant labor cost calculator
Enter the hours and hourly wage for each role and your sales for the same period. You get total labor cost, including payroll taxes and benefits, and labor cost as a percentage of sales.
Frequently asked questions
How do you calculate restaurant labor cost percentage?
Add up wages for the period, including payroll taxes and benefits, and divide by sales for the same period. For example, $8,000 of labor on $28,000 of sales is 28.6%.
What is a good labor cost percentage?
Many full-service restaurants target about 25–35% of sales. Fine dining and places with more scratch cooking tend to run higher; counter service tends to run lower.
Should I include payroll taxes?
Yes. Employer payroll taxes, workers' comp and benefits are part of what a shift really costs. If you don't know the exact figure, 8–12% on top of wages is a common starting estimate.
How can I lower labor cost without cutting service?
Schedule to your busiest hours instead of fixed blocks, avoid unplanned overtime, and compare scheduled hours with sales every week. Seeing labor % daily makes it much easier to adjust.