Free tool · Restaurants and bars

Prime cost calculator

Food, beverage, and labor as a share of sales, and what each point is worth.

Example numbers are filled in. Replace them with yours.

For any period: a week, a month, or a year.

Beginning inventory plus purchases, minus ending inventory.

Liquor, beer, wine, and other drinks, figured the same way.

All wages, salaries, payroll taxes, and benefits, including managers.

Optional, for food and pour cost

Prime cost

0%

Enter your sales and costs to see your prime cost.

0%60%100%
Prime cost in dollars$0
Food and beverage cost$0
Labor$0
Each point of prime cost is worth$0
Track it every month

Nothing you enter is saved or sent anywhere.

About prime cost

What is prime cost?

Prime cost is your cost of goods (food and beverage) plus all labor. It's usually the biggest share of a restaurant's spending, which is why it's the first number to watch.

What's a good prime cost percentage?

Many operators aim to keep prime cost at or under 60% of sales. Concepts with higher prices or lower labor can run below that, and full-service places often run a little higher. What matters most is your own trend, period over period.

What counts as labor?

All of it: hourly wages, salaries including managers, payroll taxes, and benefits. Leaving managers or taxes out makes the number look better than it is.

How do I figure cost of goods?

Beginning inventory, plus what you bought during the period, minus ending inventory. Without counts, purchases alone can swing a lot from period to period.