Restaurant labor cost percentage calculator
Labor cost percentage is the single number that tells you whether your schedule is profitable. Enter your labor cost and sales for the same period and this calculator does the math, then shows you where you land against the restaurant benchmark.
$
$
30.0%
On target for most full-service restaurants
$3,000.00 labor ÷ $10,000.00 sales
How it works
Enter total labor cost
Add up wages, salaries, and (optionally) payroll taxes and benefits for the period.
Enter total sales
Use revenue for the exact same period — a week, a pay period, or a month.
Read your percentage
The calculator divides labor by sales and shows the percentage instantly, with a colored benchmark so you can see if you’re under, on, or over target.
Most full-service restaurants aim to keep labor between 25% and 35% of sales; quick-service often runs lower and fine dining higher. The percentage only means something when labor and sales cover the same period, so compare a week of labor to a week of sales. If you’re consistently over target, the lever is usually the schedule — trimming over-coverage on slow shifts moves this number faster than anything else.
Want to track this over time? Download the restaurant labor cost tracker (with formulas) →
Stop calculating by hand
EpicShifts tracks labor cost against sales as you build the schedule — and your team sees it all on mobile. Free to start.
Frequently asked questions
How do you calculate labor cost percentage?
Divide total labor cost by total sales for the same period, then multiply by 100. For example, $3,000 of labor on $10,000 of sales is 30%. This calculator does it for you — just enter the two numbers.
What should labor cost percentage be for a restaurant?
Most full-service restaurants target 25–35% of sales. Quick-service and counter-service concepts often run lower (about 20–30%), and labor-intensive fine dining can run higher. The calculator flags where your number falls.
Should labor cost include payroll taxes and benefits?
For a true “fully loaded” labor cost, yes — include payroll taxes, benefits, and insurance, not just wages. Many operators track both a wages-only and a fully-loaded number. Enter whichever figure matches how you want to measure.
We Value Your Privacy
We use cookies to improve your experience on our platform. Essential cookies are required for the site to function properly (authentication, security). Optional cookies help us understand how you use the site and improve our services. Learn more about cookies