> Calculate restaurant labor cost percentage with transparent wage, employer-cost, and revenue inputs for the same period.
>
> Source: https://shiftpriority.com/restaurant-labor-cost-calculator/ · Language: en

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# Restaurant labor cost calculator

Labor cost percentage = total labor cost ÷ revenue for the same period × 100. This calculator keeps gross wages, editable employer costs, and revenue visible as separate assumptions.

## Calculate your labor cost

Example values - replace them with figures from the same period

Hours workedGross hourly wage in eurosEmployer on-cost in percentRevenue for the same period in euros

Target percentage (optional)

Calculate

## 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

1. Enter hours worked and gross hourly wage for the period.
2. Enter your own employer on-cost percentage. Money is rounded to whole cents.
3. 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](https://shiftpriority.com/restaurant-labor-cost-control/)

Reviewed by the ShiftPriority editorial team

Review date: 2026-07-25

[Editorial policy & methodology](https://shiftpriority.com/editorial-methodology/)

## Sources

- [ShiftPriority editorial policy & methodology](https://shiftpriority.com/editorial-methodology/)

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