Calculators
Labour Cost Percentage Calculator
Calculate labour cost as a percentage of sales and the sales or hours needed to hit a target labour percentage.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Weekly scheduling
- Budgeting staff costs
- Comparing locations
- Setting manager targets
About this tool
What the Labour Cost Percentage Calculator does
Labour cost percentage divides total labour cost, including payroll taxes and benefits, by sales for the same period. It is a key control figure in restaurants, retail and services. Working backwards from a target shows the sales needed or the hours you can schedule.
It also works as a labor cost percentage calculator.
Formula
- Labour cost = hours × wage × (1 + burden)
- Labour % = labour cost ÷ sales
- Hours allowed = sales × target ÷ loaded hourly cost
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Sales | $40,000 |
| Labour hours | 1,200 |
| Average hourly wage | $16.00 |
| Payroll taxes and benefits | 15% |
| Target labour cost | 30% |
| Result | Value |
|---|---|
| Labour cost percentage | 55.2% |
| Labour cost | $22,080 |
| Hours allowed at target | 652 |
| Sales needed at current hours | $73,600 |
| Sales per labour hour | $33.33 |
How to read the result
Schedule to forecast sales by day part; most overspend happens in quiet periods with full staffing.
Sales per labour hour is a useful companion metric that ignores wage changes.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Often 25% to 35% of sales, depending on service style.
Include all labour for a full view; some operators track hourly labour separately.
Match schedules to demand, cross-train staff and reduce overtime.
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