Labor Cost Percentage Calculator

Enter total labor cost (wages, taxes, and benefits) and total sales for the same period.

Total Labor Cost Include wages, payroll tax, and benefits.

Total Sales

Result

Enter your numbers to see your labor cost %.

How to calculate labor cost percentage

Labor cost percentage shows how much of every sales dollar goes to your team. It's the number most operators watch weekly, since it reacts quickly to scheduling, overtime, and sales volume swings.

Labor Cost % = (Total Labor Cost ÷ Total Sales) × 100

What's a healthy labor cost percentage?

Full-service restaurants typically target 28-35% labor cost, quick-service often runs 25-30%, and fine dining can run higher due to service ratios. Labor and food cost together (prime cost) is usually the more useful number to track day to day.

Fixed vs variable labor

Some labor is fixed (salaried managers) regardless of sales volume, while hourly staff can flex with demand. Separating the two helps you see how much of a labor cost spike is a scheduling issue versus a genuine sales slowdown.