Prime cost calculator

Free tool · no signup · runs in your browser · Last updated: October 21, 2026 · By the Varastiq team

Key takeaway: Prime cost = food COGS + beverage COGS + total labor (wages, payroll taxes and benefits). Prime cost % = prime cost ÷ total sales × 100. It's the biggest share of spending you can control week to week. Enter your numbers below to see prime cost, the food / beverage / labor split, and what one point is worth to you per year.

How do you use the prime cost calculator?

1. Pick weekly or monthly. Weekly lets you react before a bad month is locked in.
2. Total sales. Net food and beverage sales for the period, from your POS.
3. Food COGS and beverage COGS. Beginning inventory + purchases − ending inventory, for each. Use the food cost calculator if you need to work it out.
4. Labor. Wages and salaries for front and back of house, plus the employer share of payroll taxes, plus benefits. This is "loaded" labor. Using wages alone understates prime cost.
5. Target (optional). Enter your own target prime cost % to see how many dollars you're over or under, per period and per year.

What is the prime cost formula?

Labor        = Wages and salaries + Payroll taxes + Benefits
Prime cost   = Food COGS + Beverage COGS + Labor
Prime cost % = Prime cost ÷ Total sales × 100
1 point/year = Total sales × 1% × Periods per year

Spreadsheet version, with sales in B1, food COGS in B2, beverage COGS in B3 and loaded labor in B4: =(B2+B3+B4)/B1.

What does a worked example look like?

A full-service restaurant, one week:

• One point of prime cost here is $420 a week, or $21,840 a year.
• If the owner's target is 62%, this week is $1,560 over, which is about $81,120 a year at this pace.

Illustrative example, not customer data.

What is a good prime cost percentage?

The most solid published number we found: the National Restaurant Association reported that prime costs (food, beverage and labor) were a median of 65% of sales for limited-service restaurants in 2024 (Restaurant Operations Data Abstract, 2025 edition; press release dated August 20, 2025). The same release reported payroll and benefits at a median 36.5% of sales for full-service restaurants, and NRA reported full-service food and non-alcoholic beverage cost at a median 32.0%.

Those two full-service medians can't simply be added to get a full-service prime cost median, because the median of a sum isn't the sum of medians. We haven't found a published full-service prime cost median to cite, so we don't give one. Some industry guides quote 60–65% of sales as a planning rule of thumb. One of them (Bzz, accessed October 20, 2026) notes that these figures are rules of thumb, not survey findings. Treat that range as a guide, not a measured benchmark. Your occupancy cost decides how much room you have.

Why track food and labor together?

Because they trade off. Pre-cut produce raises food cost and saves prep hours. A dedicated prep cook adds labor and can cut waste. Looking at either line alone can push you into a "saving" that costs more elsewhere. Prime cost shows the net effect.

How does Varastiq calculate prime cost?

Varastiq builds prime cost from data you already have. COGS comes from counts in the Stiq app and captured invoices. Sales come from Toast (read-only) or a supported item-level sales report. Labor costs come from Toast time entries, a supported wages CSV or manual entry. You see food %, beverage %, labor % and prime cost weekly, next to prior weeks. See prime cost in Varastiq and the full restaurant prime cost guide.

Frequently asked questions

How do you calculate prime cost?

Add food cost of goods sold, beverage cost of goods sold and total labor cost, including wages, payroll taxes and benefits. Divide by total sales and multiply by 100 for prime cost percentage.

Does prime cost include management salaries?

Yes. Prime cost labor normally includes all front-of-house and back-of-house wages and salaries, including managers, plus payroll taxes and benefits.

What is a good prime cost for a restaurant?

The National Restaurant Association reported a 65% median prime cost for limited-service restaurants in 2024. Some industry guides quote 60 to 65% of sales as a planning rule of thumb, which is not a survey result. The right target depends on your rent, concept and prices.

Should I calculate prime cost weekly or monthly?

Weekly is better for control because you can still change the schedule or ordering before the month closes. Monthly matches most accounting statements.

Why use total sales instead of food sales?

Prime cost covers food, beverage and labor, which together support all sales, so it is measured against total sales.

Does this calculator save my numbers?

No. Everything runs in your browser and nothing you enter is sent anywhere.

Sources

• National Restaurant Association, "New Resource from National Restaurant Association Provides Insights into Operational Realities," press release, August 20, 2025. National Restaurant Association. Accessed October 20, 2026.
• National Restaurant Association, "Restaurant operators kept food cost ratios in check in 2024." National Restaurant Association. Accessed October 20, 2026.
• Bzz, "Prime Cost: What It Is and What Yours Should Be." bzz-app.com/industry-cost-benchmarks/prime-cost. Accessed October 20, 2026. (Rule of thumb; not verified as survey data.)

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See prime cost every week, without the spreadsheet

Varastiq pulls COGS from counts and invoices, sales from your POS, and wages from your recorded labor costs. Varastiq Pro: $149/month for your first location, plus $99/month for each additional location, or $1,639/year (1 month free). Optional $299 guided setup. Money-back guarantee on the software: 14 days on monthly plans, 30 days on annual.

Request a demo → · See how prime cost works in Varastiq →