Formula
Labor cost percentage = total labor cost ÷ revenue for the same period × 100.
Total labor cost = gross payroll + employer on-cost. The employer on-cost is editable; the calculator does not assume a legal or recommended percentage.
Worked example
160 hours × €14.00 gross hourly wage = €2,240.00 gross payroll. With a 20% employer on-cost, €448.00 is added, for total labor cost of €2,688.00.
With €12,000.00 revenue for the same period, labor cost is 22.4%. Against an entered target of 30.0%, that is 7.6 percentage points lower.
How the labor cost calculator works
- Enter hours worked and gross hourly wage for the period.
- Enter your own employer on-cost percentage. Money is rounded to whole cents.
- Compare total labor cost with revenue from exactly the same period and, optionally, with your own target.
Limits
The result is a planning metric, not payroll. Use employer costs and revenue from your accounting records for the same period.
The tool supports planning and does not provide payroll, tax, or legal advice.
Track labor cost automatically with schedules and revenue
ShiftPriority connects schedules and revenue so you can follow labor cost during day-to-day restaurant operations.
See labor cost control in ShiftPriority