Free tool for restaurant owners and managers
Restaurant prime cost calculator
Prime cost = cost of goods sold (food used + beverage used) + total labor cost, and prime cost % = prime cost ÷ sales × 100. A month with $85,000 of sales, $24,650 of food and $4,350 of beverage used ($29,000 cost of goods sold) and $26,000 of labor including payroll taxes and benefits has a prime cost of $55,000, which is 64.7% of sales: food and beverage 34.1%, labor 30.6%. That leaves $30,000 for rent, other costs and profit. At a 62% target the prime cost budget is $52,700, so the month ran $2,300 over.
Last updated 2026-11-12.
- Prime cost %
- Prime cost
- Food and beverage % of sales
- Labor % of sales
- Left for rent, other costs and profit
- Prime cost budget at target
- Over (+) or under (−) target
Check the inputs: sales above 0, costs not negative, a target above 0% and at most 100%.
Take it with you
Example scenarios
Three sets of example inputs worked through the same formulas as the calculator above. They are illustrations, not averages or statistics.
| Scenario | Inputs (one month) | Prime cost | Prime cost % | Food and beverage % | Labor % | Left for other costs |
|---|---|---|---|---|---|---|
| Low | $45,000 sales, $12,600 food, $1,900 beverage, $13,500 labor | $28,000 | 62.2% | 32.2% | 30.0% | $17,000 |
| Typical | $85,000 sales, $24,650 food, $4,350 beverage, $26,000 labor | $55,000 | 64.7% | 34.1% | 30.6% | $30,000 |
| High | $160,000 sales, $44,800 food, $9,600 beverage, $52,000 labor | $106,400 | 66.5% | 34.0% | 32.5% | $53,600 |
Method: Cost of goods sold = food used + beverage used (opening stock + purchases − closing stock); prime cost = cost of goods sold + total labor (wages, salaries, payroll taxes and benefits); prime cost % = prime cost ÷ sales; left for other costs and profit = sales − prime cost; prime cost budget = sales × target %. Figures checked against the same formulas on 2026-11-12.
How the calculator works
Pick one period, usually a month, and use it for every number. Enter total sales, then the food and the beverage you actually used, counted the inventory way: opening stock plus purchases minus closing stock. Purchases alone mislead, because a month that fills the walk-in looks expensive and the next one looks cheap. Then enter total labor: hourly wages, salaries, and what you pay on top as the employer for payroll taxes and benefits.
Prime cost is food and beverage used plus labor. Prime cost percentage is that total divided by sales. The calculator also shows each half as a share of sales, the money left after prime cost for rent, energy, insurance, repairs and profit, and the prime cost budget at the target you enter, with how far over or under it the period ran.
Worked month
A month brings in $85,000. Food used was $24,650 and beverage used $4,350, so cost of goods sold is $29,000, or 34.1% of sales. Labor including payroll taxes and benefits was $26,000, or 30.6%. Prime cost is $29,000 + $26,000 = $55,000, and $55,000 ÷ $85,000 = 64.7%.
$85,000 − $55,000 = $30,000 is left for everything else. With a 62% target the month could have spent $85,000 × 0.62 = $52,700 on food, drink and labor together, so it ran $2,300 over. That gap can come out of either half.
Choosing a target
Restaurant trade guides commonly quote a prime cost of roughly 60 to 65 percent of sales as workable, with counter service often lower and full service with more staff higher. Treat that as a starting point, not a rule. Work it out from the other side too: add up rent, utilities, insurance, card fees and the other fixed costs as a share of sales, add the profit you want, and what remains is the prime cost you can afford. A place with low rent can carry more; one in an expensive street needs less.
Which half to work on
If food and beverage is high, the levers are plate cost and pricing: recost the dishes that sell most, check portions and waste, and reprice the ones whose ingredients went up. If labor is high, the lever is scheduling against the covers you actually serve rather than cutting pay. Cutting both a little is usually easier than cutting one a lot, and the split tells you where the drift came from.
What this tool does not do
It works on totals you enter for one period and keeps nothing after you close the page. It does not read your point of sale, inventory or payroll, and it is arithmetic on your numbers, not accounting, tax or legal advice.
Questions
How do you calculate prime cost for a restaurant?
Add the food and beverage you used in a period to total labor including payroll taxes and benefits: $29,000 + $26,000 = $55,000.
How do you calculate prime cost percentage?
Divide prime cost by total sales for the same period and multiply by 100: $55,000 ÷ $85,000 = 64.7%.
What is a good prime cost for a restaurant?
Trade guides often quote roughly 60 to 65 percent of sales; set your own target from your rent and other fixed costs and the profit you want.
Does this page store my numbers?
No. The math runs in your browser; nothing is sent or saved.
Made by Bardach Technologies. We also make Larderly, a separate food cost sheet for Excel and Google Sheets that costs every dish and keeps a weekly stock count (USD 29.99, instant download on Gumroad). It covers the food half of prime cost, not labor or payroll. This calculator is free and needs no sign-up; nothing is charged on this page. Get Larderly on Gumroad (USD 29.99)