Restaurant scenarioExample 1
Sales-based hours
$50,000 sales × 30% = $15,000 budget ÷ $15/hr = 1,000 available labor hours.
Labor
Restaurant Labor Hours Calculator
Estimate maximum schedulable labor hours from projected sales and target labor %, or from an available labor budget, after optional taxes, benefits, and other costs.
Labor hours
Formula
Labor Budget (sales) = Projected Sales × (Target Labor % ÷ 100) Labor Budget (budget mode) = Available Labor Budget Loaded Labor Budget = Labor Budget − Payroll Taxes − Benefits − Other Costs Available Labor Hours = Loaded Labor Budget ÷ Average Hourly Wage Hours/Day = Available Hours ÷ Operating Days (optional) Employees/Shift = Hours/Day ÷ Shift Length (optional)
What it means
Convert a sales-driven or fixed labor budget into schedulable hours. Optional taxes, benefits, and other costs are deducted first so hours reflect wage dollars only. Optional days and shift length turn period hours into daily staffing guidance.
Good to know
- Projected sales and budgets are for one planning period (treated as a week for monthly capacity).
- Optional percentages and costs default to zero when blank.
- Monthly capacity = weekly hours × (52 ÷ 12).
Ideal range
- Does not model tip credit, overtime premiums, or role-specific wage mixes.
- Shift recommendations assume even coverage across operating days.
Variables
- Loaded Labor BudgetWage dollars after burden
- Labor budget minus payroll tax %, benefits %, and other labor dollars.
- Available Labor HoursMax schedulable hours
- Loaded labor budget ÷ average hourly wage for the period.
- Employees per shiftShift coverage
- Hours per day ÷ average shift length (or operating hours if shift is blank).
Worked examples
Real numbers through the same formula this tool uses.
- 1
- 2Restaurant scenarioExample 2
After taxes and benefits
Same $15,000 budget minus 10% tax, 5% benefits, and $500 other → $12,250 ÷ $15 = 816.7 hours.
- 3Restaurant scenarioExample 3
Budget-based hours
$12,000 available budget ÷ $16/hr = 750 hours (~125/day over 6 days).
How to use this calculator
Turn a labor budget into maximum hours you can schedule without blowing labor %.
Choose sales-based or budget-based
Sales mode builds the budget from sales × target labor %. Budget mode starts from dollars you already know.
Enter average hourly wage
Use a blended wage across the roles you will schedule this period.
Optionally deduct taxes, benefits, and other costs
Leave wage dollars only so hours are not inflated by employer burden.
Add days and shift length for staffing guidance
See hours/day and employees per shift, then refine in the Staffing Calculator.
What are labor hours?
Labor hours are the paid hours you can schedule before labor cost breaks your target.
Hours from dollars
A labor budget only becomes a schedule when you divide wage dollars by average hourly wage. That quotient is your maximum labor hours.
Why labor hours matter
Guests feel coverage; the P&L feels hours. Affordable hours keep labor % and prime cost on plan.
How hours affect profitability
Extra hours above the budget raise labor cost % immediately. Under-hours may protect margin but hurt service and sales.
Industry benchmarks
Many restaurants target roughly 25–35% labor cost. Convert that dollar budget into hours, then compare required hours from the Staffing Calculator.
Best practices
Habits that keep hour capacity realistic.
Deduct taxes and benefits before converting to hours
Burden still spends the labor budget. Leaving it in inflates hours you cannot actually pay as wages.
Use a blended wage that matches the roster
Mixing $12 and $22 roles? Weight the average toward the hours you actually schedule.
Compare affordable hours to demand hours
Run Staffing for required hours. If demand exceeds capacity, fix productivity, pricing, or the labor target.
Keep the period consistent
Sales, budget, and hours should share the same week (or month) so Labor Cost % closes cleanly.
Common mistakes
Errors that overstate schedule capacity.
Converting the full labor budget into hours
Taxes and benefits are not wage hours. Deduct them first.
Using the lowest wage on the team
An optimistic wage overstates hours and understates cost when managers and cooks share the schedule.
Ignoring overtime
If the roster routinely runs OT, affordable straight-time hours shrink — check the Overtime Cost Calculator.
Mixing weekly sales with monthly budgets
Period mismatches make hours look fine until the P&L closes.
Related tools and guides
Bridge budgets, staffing, burden, and labor %.
Labor Budget Calculator
Set the dollar ceiling from sales and target labor %.
Restaurant Staffing Calculator
Estimate required hours from sales or customers.
Payroll Burden Calculator
Estimate employer burden % above base wages.
Employee Cost Calculator
Fully loaded annual cost for hourly or salaried roles.
Labor Cost Percentage Calculator
Measure actual labor ÷ sales after the period.
Restaurant Overtime Cost Calculator
Estimate OT pay, premium, and loaded OT expense.
Prime Cost Calculator
Combine food and labor into one controllable-cost benchmark.
Frequently asked questions
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