RESTAURANT / FREE OPERATOR TOOLS
Prime Cost Calculator
Combine goods used and fully loaded labor cost.
Default numbers are an example, not industry data.
Formula
Prime cost = COGS + total labor cost; prime cost % = prime cost ÷ sales × 100.
How it works
Prime cost combines goods used and labor, two major controllable restaurant cost categories. Enter COGS rather than purchases alone, and include wages, employer payroll taxes and benefits in total labor cost.
Match both costs to the same period as net sales excluding VAT or sales tax. Avoid counting labor twice inside COGS and labor. If prime cost rises, separate purchasing, waste, portions and staffing effects; the amount left must still cover rent, utilities and other expenses before profit.
Worked example
13,000 COGS + 12,000 labor = 25,000 prime cost, or 62.50% of 40,000 sales.
Benchmark
Many operators aim for prime cost under roughly 60–65% of sales as a commonly cited rule of thumb.
Frequently asked questions
Does prime cost include rent?
No. This calculator combines COGS and labor only. Rent and other overhead must be paid from the remaining sales.
Should I use purchases or COGS?
Use COGS, which adjusts purchases for beginning and ending inventory. Purchases alone can distort a period with stock building or depletion.
What is a useful prime cost target?
Under roughly 60–65% of sales is a commonly cited rule of thumb. Concept, wage structure and other operating costs affect whether that is workable.
Are my inputs saved or uploaded?
Calculations run in your browser. Inputs are not uploaded by the calculator. Sharing puts the inputs in a readable URL; anyone with that link can see them.