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Labor Cost Percentage Calculator
Restaurant labor % vs revenue, with benefits & taxes
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About this tool
Restaurant industry benchmark is 30% labor cost — anything above and your margin starts disappearing. This free Labor Cost Percentage Calculator runs the formula correctly: it adds employer-side benefits and payroll taxes on top of gross wages, then divides by revenue. You get the true labor cost percentage plus an instant rating against the 25/30/35% benchmark tiers and a clear recommendation. Use it weekly to spot creep before it eats your profit, or when planning a new shift schedule.
How to use it
- 1 Enter total revenue for the period
- 2 Enter gross wages paid in that same period
- 3 Enter employer-side benefits and tax % (commonly 18–25%)
- 4 Read total labor cost, labor %, and rating
What you get
- Adds employer-side benefits + taxes correctly
- Industry-standard 25/30/35% benchmark rating
- Free, no signup
- Useful weekly for FOH/BOH scheduling
Do it for every case with Restaurant Hub
Work out your labour cost here – and keep your menu, prices and today's offers in one place with Restaurant Hub.
Cancel anytime · No long-term contract · 14 days free