Labour & prime cost
Prime Cost Calculator
What is my prime cost, and where is it coming from?
Prime cost is cost of goods sold plus all labour, divided by sales. It is the number most operators are measured on because it covers the two costs you can still change this week. Take these figures straight off one period's P&L.
Your numbers
Pre-filled with a worked example so you can see how it behaves. Type over any field with your own figures. Nothing you enter is sent anywhere.
The answer
How this is calculated
Cost of goods sold = food cost + beverage cost
Total labour = hourly wages + salaried wages + payroll taxes and benefits
Prime cost = cost of goods sold + total labour
Prime cost % = prime cost ÷ total sales × 100
What this does not tell you
- Use the same period for every figure. Mixing a monthly P&L with a weekly payroll run produces a meaningless ratio.
- Use net sales excluding sales tax. Including tax inflates the denominator and flatters the result.
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