# Prime cost calculator

> Free prime cost calculator: add cost of goods sold and total labor, divide by sales. See your prime cost % against the 60% benchmark.

Source: https://platofy.app/tools/prime-cost-calculator

Prime cost is your two biggest costs added together: what you spend on food and drinks, and what you spend on people. Keep it near 60% of sales and the rest of the P&L usually works.

## Frequently asked questions

### What is prime cost in a restaurant?

Prime cost = cost of goods sold (food, beverage, packaging) + total labor cost (wages, salaries, payroll taxes and benefits). It is usually shown as a % of total sales.

### What is a good prime cost percentage?

60% of sales or less is the common target. Quick-service restaurants often reach 55–60%, full-service ones 60–65%. Above 65% leaves little for rent, utilities and profit.

### How often should I calculate prime cost?

Weekly. Monthly numbers arrive too late to fix anything. A weekly inventory count and payroll report are enough to do it in a few minutes.

## Explore Platofy

- [Platofy home](https://platofy.app/)
- [How it works](https://platofy.app/how-it-works)
- [Free tools](https://platofy.app/tools)
- [Restaurant schedule template](https://platofy.app/tools/restaurant-schedule-template)
- [Labor cost calculator](https://platofy.app/tools/labor-cost-calculator)
- [Overtime calculator](https://platofy.app/tools/overtime-calculator)
- [Tip pool calculator](https://platofy.app/tools/tip-pool-calculator)
- [Food cost calculator](https://platofy.app/tools/food-cost-calculator)
- [Menu price calculator](https://platofy.app/tools/menu-price-calculator)
- [Prime cost calculator](https://platofy.app/tools/prime-cost-calculator)
- [Restaurant break-even calculator](https://platofy.app/tools/restaurant-break-even-calculator)
- [Time card calculator](https://platofy.app/tools/time-card-calculator)
- [7shifts alternative](https://platofy.app/compare/7shifts)
- [Homebase alternative](https://platofy.app/compare/homebase)
- [When I Work alternative](https://platofy.app/compare/when-i-work)
- [Free switch-over](https://platofy.app/switch)
- [Try the live demo](https://platofy.app/demo)
- [Start free](https://platofy.app/login?mode=onboarding)
- [Terms](https://platofy.app/terms)
- [Privacy](https://platofy.app/privacy)