Labor Cost Percentage Calculator
Labour as a share of sales, and the hours you can afford.
Enter your values
Enter the sales for the period in $.
Enter the wages paid in $.
Enter the payroll taxes and benefits in % of wages.
Enter the target labour percentage in %.
Enter the average hourly rate in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Labour cost percentage
- 31.4%
- Total labour cost
- $21,350.00
- Verdict
- Over target by 3.4%
- Labour budget at target
- $19,040.00
- Over/under budget
- $2,310.00
- Hours affordable at target
- 892 h
- Sales per labour dollar
- $3.19
Quick answer
Labour cost percentage = total labour cost ÷ sales × 100, where labour cost includes wages, payroll taxes and benefits, not just hourly pay.
Labour % = total labour cost ÷ sales × 100
At a glance
| What it does | Labour as a share of sales, and the hours you can afford. |
|---|---|
| Category | Business |
| Inputs needed | Sales for the period, Wages paid, Payroll taxes and benefits, Target labour percentage, Average hourly rate |
| Main output | Labour cost percentage |
| Formula | Labour % = total labour cost ÷ sales × 100 |
| Cost | Free — no sign-up, no download |
How to use the Labor Cost Percentage Calculator
- 1Enter sales for the period you are measuring.
- 2Enter wages paid and the payroll burden percentage.
- 3Set your target labour percentage for the sector.
Inputs explained
- Sales for the period($)
- Enter the sales for the period in $.
- Wages paid($)
- Enter the wages paid in $.
- Payroll taxes and benefits(% of wages)
- Enter the payroll taxes and benefits in % of wages.
- Target labour percentage(%)
- Enter the target labour percentage in %.
- Average hourly rate($)
- Enter the average hourly rate in $.
Worked example
Using the values the calculator loads with:
Inputs
- Sales for the period68000 $
- Wages paid17500 $
- Payroll taxes and benefits22 % of wages
- Target labour percentage28 %
- Average hourly rate17.50 $
Results
- Labour cost percentage31.4%
- Total labour cost$21,350.00
- VerdictOver target by 3.4%
- Labour budget at target$19,040.00
- Over/under budget$2,310.00
- Hours affordable at target892 h
- Sales per labour dollar$3.19
Frequently asked questions
What labour percentage should a restaurant run?
Quick service typically 25–30%, full service 30–35%, and fine dining up to 40%. Add food cost and the combined prime cost should stay under 60–65%.
Should owner pay be included?
Include a market-rate wage for any owner working in the business, otherwise the number understates the true cost of running it.
What do I need to enter into the Labor Cost Percentage Calculator?
Just 5 values: sales for the period, wages paid, payroll taxes and benefits, target labour percentage, average hourly rate. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Labor Cost Percentage Calculator work out the answer?
Labour cost percentage = total labour cost ÷ sales × 100, where labour cost includes wages, payroll taxes and benefits, not just hourly pay. It applies the formula Labour % = total labour cost ÷ sales × 100 and shows the working so you can check each step by hand.
Is the Labor Cost Percentage Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.