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Prime cost calculator

Free tool · Restaurants

Prime cost is what you spend on food, drinks and labor. Keep it at 65% of sales or less and the rest of the business has room to pay its bills.

Inventory at the start of the week, plus food and beverage purchases, less inventory at the end. Example: 5,520.
Wages, payroll taxes, benefits and salaried pay for the week. Your payroll report has the total.
Food and beverage sales for the same week, before tax. Take it from the POS end of day reports.
Prime cost above this reads over. It starts at 65%, and you can set your own.

Prime cost %

56.9%

Status

Inside your limit. Keep doing what this week did.

Prime cost

$10,823.36

An estimate for planning. Check the numbers with your accountant before you decide.

How the math works

Prime cost = cost of goods sold + labor. Prime cost % = prime cost ÷ sales, all for the same week.

Cost of goods sold = inventory at the start + food and beverage purchases − inventory at the end. Labor counts wages, payroll taxes, benefits and salaried pay. Sales are food and beverage sales before tax.

Above your limit the status reads over. From 60% up to the limit it reads close. The example week has $5,520 in cost of goods, $5,303.36 in labor and $19,030 in sales, so prime cost is 56.9%. Watch the trend week to week.