Restaurant scenarioExample 1
$10k food + $12k labor on $40k sales
Prime cost = $22,000. Prime cost % = 55%. Food 25%, labor 30% of sales.
Food cost
Prime Cost Calculator
Calculate restaurant prime cost: food cost plus labor (wages, taxes, benefits). See prime cost %, food vs labor split, benchmark status, and optional target comparison.
Prime cost formula
Formula
Prime Cost = Food Cost + Labor Cost + Payroll Taxes + Benefits + Other Direct Labor Prime Cost % = (Prime Cost ÷ Sales) × 100 Food Cost % = (Food Cost ÷ Sales) × 100 Labor Cost % = (Total Labor ÷ Sales) × 100
What it means
Prime cost combines your two largest controllable expenses. Include loaded labor — not just wages — for an accurate picture. Lower prime cost % leaves more room for overhead and profit.
Good to know
- Food, labor, and sales cover the same time period.
- Optional labor lines default to zero when left blank.
- Rent, utilities, and marketing are not included in prime cost.
Ideal range
- Does not calculate net profit or break-even.
- Benchmark bands are guidelines — targets vary by concept and market.
Variables
- Food costIngredient cost
- Total food purchases and usage for the period.
- Labor costLoaded labor
- Wages plus payroll taxes, benefits, and other direct labor charges.
- SalesRevenue
- Food sales for the same period. Must be greater than zero.
Worked examples
Real numbers through the same formula this tool uses.
- 1
- 2Restaurant scenarioExample 2
60% target on $50k sales
Target prime cost budget = $30,000. Use as a spending cap for food plus labor.
How to use this calculator
Four steps from costs to prime cost %.
Choose your mode
Enter actual food, labor, and sales — or set a target prime cost % with sales.
Enter food and labor
Use P&L or POS reports. Add payroll taxes, benefits, and other direct labor if tracked separately.
Enter total sales
Food sales for the same period as your cost figures.
Review benchmark and split
Check prime cost %, food vs labor share, and benchmark status against the 55–65% typical range.
What is prime cost?
Prime cost is the combination of food cost and labor cost — the two largest controllable expenses in most restaurants.
Prime cost definition
Prime Cost = Food Cost + Labor Cost (including payroll taxes, benefits, and other direct labor). Prime Cost % = Prime Cost ÷ Sales × 100.
Why prime cost matters
Prime cost typically accounts for 55–65% of sales in full-service restaurants. What remains must cover rent, utilities, marketing, and profit.
Food share vs labor share
The calculator shows each line as a percent of sales and as a share of total prime cost. A balanced split depends on your concept — fine dining may run higher labor; fast casual may run higher food cost efficiency.
Using target mode
Set a target prime cost % and sales to see your prime cost budget in dollars. Enter actual food and labor to measure variance from target.
Best practices
How operators manage prime cost week to week.
Track prime cost weekly
Waiting for month-end closes hides problems. Compare food and labor against sales every week using the same definitions.
Include loaded labor
Wages alone understate labor. Add payroll taxes, benefits, and workers comp for a true prime cost picture.
Match the period
Food cost, labor cost, and sales must cover the same dates. Mixing partial weeks distorts prime cost %.
Act on variance early
When prime cost drifts above target, diagnose whether food purchasing, waste, scheduling, or sales softness is the driver — then fix the root cause.
Common mistakes
Errors that make prime cost misleading.
Counting wages only
Excluding payroll taxes and benefits makes labor look cheaper than it is and understates prime cost.
Using all sales instead of food sales
If you benchmark food cost on food sales only, use food sales for prime cost % too — or be consistent with your P&L definitions.
Missing overtime and bonuses
Spikes in overtime or manager bonuses belong in labor cost for the period they hit — not smoothed away.
Setting targets without variance review
A 60% target means nothing if you never compare actual prime cost and adjust scheduling or purchasing.
References & related tools
Food cost cluster and upcoming labor tools.
Food Cost Percentage Calculator
Isolate food cost % before combining with labor.
Gross Profit Calculator
Food margin per dish before labor is added.
Menu Price Calculator
Set menu prices from plate cost and food cost targets.
Plate Cost Calculator
Build accurate food cost inputs from plated meals.
Labor Cost Percentage Calculator (coming soon)
Track labor cost % of sales as a standalone metric.
Frequently asked questions
You may also need
Complementary calculators that often pair with this workflow.
Laborbeginner2 min
Labor Cost Percentage Calculator
Calculate restaurant labor cost percentage from total labor and sales. Optionally include payroll taxes and benefits for a loaded labor figure.
Laborbeginner3 min
Labor Budget Calculator
Set a maximum restaurant labor budget from projected sales and a target labor cost %. Add payroll tax %, benefits %, and other expenses for a loaded total — optionally track budget remaining.
Laborintermediate4 min
Restaurant Staffing Calculator
Estimate required labor hours and employees from projected sales or daily customers, operating hours, and productivity — with optional shift length and FT/PT split.
Continue exploring
More tools to browse after you finish this calculation.
Inventoryintermediate4 min
Restaurant Inventory Shrinkage Calculator
Compare expected versus actual restaurant inventory to calculate shrinkage quantity, shrinkage value, shrinkage percentage, inventory accuracy, and adjusted loss after recovery — with optional cause breakdown for waste, spoilage, damage, and theft.
Pricingbeginner5 min
Restaurant Sales Mix Calculator
Calculate restaurant sales mix from units sold and selling price per item or category. See mix %, revenue share, contribution and profit rankings, top and lowest performers, and a concentration benchmark.
Operationsbeginner4 min
Restaurant Service Time Calculator
Calculate restaurant service time from guest volume or order cycle stages. See average minutes, guests per hour, stage shares, and benchmark status.
Related articles
Guides from the Learning Center that explain this topic.
Food cost2 min readUpdated 2026-07-20
What Is Prime Cost?
Prime cost combines food cost and labor cost into one benchmark. Learn the definition, the formula, typical ranges, and how to use the target mode to manage labor and purchasing together.
Continue ReadingFood cost3 min readUpdated 2026-07-20
What Is Food Cost Percentage?
A clear definition of food cost percentage, why restaurants track it, typical target ranges, and how to calculate it with a simple formula.
Continue ReadingFood cost2 min readUpdated 2026-07-20
Gross Profit vs Net Profit
Restaurant gross profit is food margin; net profit includes every operating expense. Learn the difference, how to calculate gross profit %, and how to interpret your food-cost-driven results.
Continue ReadingBrowse all guides in the Learning Center.