Labor cost percentage calculator
Check if your staffing cost fits your sales. Enter sales, wages and payroll extras for the same period, and compare the labor cost percentage with your target.
How to use it
- You enter the data
- Smallo works it out
- You get the result
- Enter your sales for the period.
- Enter wages and payroll taxes and benefits for the same period.
- Read the labor cost % and the budget left at your target.
Frequently asked questions
What should be included in labor cost?
Wages and salaries, overtime, the employer share of payroll taxes, and benefits like health insurance. Use the same period as your sales.
What is a good labor cost percentage?
Restaurants often aim for about 25% to 35% of sales; service businesses can be much higher. Track it weekly to adjust schedules early.