---
title: "Prime cost calculator · BuiltByEstrada"
description: "Add the week’s cost of goods and labor, divide by sales and see your prime cost % against a 65% limit you can change."
url: "https://builtbyestrada.ai/tools/prime-cost-calculator/"
lang: "en"
---

# 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.

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.