Prime Cost Calculator
The number that decides restaurant and bar survival. Enter food/beverage cost and labor cost against revenue to see your true prime cost % and whether it sits in the healthy 60-65% band.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Your Prime Cost
Prime Cost Result
* Prime cost = food/beverage cost + labor cost. This is the master restaurant/bar KPI; target 60-65% for full-service, lower for QSR. Educational reference, not advice.
What This Calculator Tells You
True Prime Cost
Food/beverage + labor as a share of sales — the master KPI.
vs Your Target
Compares to a 60-65% full-service target (adjustable).
Plain-English Verdict
Red/yellow/green read on whether rent and profit are at risk.
Actionable
Above target, trim waste or labor share before occupancy gets squeezed.
Authoritative References
- Restaurant365 — Prime Cost — the 60-65% full-service benchmark.
- Industry prime-cost ranges by segment (retrieved 2026-08-13) documented in our restaurant and bar guides.
Estimates only. Prime cost from your inputs; employer tax is a labeled default range. Not financial advice.
Prime Cost FAQs
Prime cost = food/beverage cost + labor cost (wages plus employer tax). It excludes rent and overhead, isolating the two biggest costs you control day to day. It is the single best predictor of restaurant survival.
Full-service restaurants target about 60-65% of sales; quick-service can run lower (45-55%). Above 70% there is little left for rent, utilities, and profit, and losses accumulate fast.
Wages are not the full labor cost. FICA, SUTA, FUTA, and workers comp add roughly 15-25% on top. Counting only gross wages understates prime cost and makes the store look healthier than it is.