Restaurant labor cost percentage: the formula, from your schedule
Labor cost percentage = labor cost ÷ sales × 100. The hard part is knowing the labor cost before the week happens. Build the schedule below with hourly rates and it gives you the week's labor cost; divide by the sales you expect.
- Labor cost % = labor cost ÷ sales × 100
- Labor cost from the schedule = paid hours × each person's rate, plus any overtime premium
- Use the same period for both (one week of labor vs one week of sales)
Press Load example → Restaurant: FOH + BOH, split shifts, then type your own staff and rates. Read the guide ↓
Tap + to add the selected shift, tap a shift to edit it. Drag a shift to move it (hold Ctrl or Alt to copy). Keyboard: Ctrl+C on a shift, Ctrl+V on a +. To copy on a phone, open a shift and tap Copy.
Week done? Turn the schedule into hours worked with Hoursprig timesheets.
Staff
Hourly rate is optional and only used for labour cost. Untick the days someone cannot work and Rotasprig warns you if you schedule them.
Shift templates
Your usual shifts, shown as buttons above the schedule. Tap one, then tap a day to add it.
Settings
Coverage by hour
How many people are on at each hour of the week (someone counts for an hour when they work at least 30 minutes of it; breaks are not taken out).
Labour cost and overtime PRO
Hours, regular and overtime hours, and cost per person and per day, ready for payroll.
The labour cost and overtime report and CSV export for payroll are part of Rotasprig Pro. Free schedules already show hours and labour cost per day and week.
Your data
Everything is saved in this browser only. Nothing is uploaded.
Scheduling a bigger team or a second site?
Rotasprig Pro: unlimited staff, several locations, every past week saved, the labour cost and overtime report, CSV export for payroll, a PNG for each person and no footer line. $6/month or $49 once, with no per-user fees.
Rotasprig is a scheduling tool, not payroll or legal advice. Rest, break and overtime rules differ by country, state and contract; the thresholds here are your own assumptions.
Worked example (restaurant example in the app)
| Step | Value |
|---|---|
| Scheduled hours after breaks | 284.5 |
| Labour at base rates | $4,913.50 |
| Weekly overtime over 40 h (10 h × half the rate, Pro report) | $93.75 |
| Labour cost for the week | $5,007.25 |
| Sales for the week (made-up figure for the example) | $20,000.00 |
| Labour cost % | 25.0% |
Hours, cost and overtime by Rotasprig for the week of 12 Oct 2026. The sales figure is invented to show the arithmetic; use your own forecast or last year's same week.
Try your own numbers
What counts as labor cost?
The schedule gives wages for scheduled hours. Your full labor cost may also include payroll taxes, benefits, salaried managers and tips paid through payroll; include them the same way every week so the percentage is comparable. We don't quote an "ideal" percentage: it depends on concept, location and how you count.
Lowering it without guessing
- Open Coverage and look for hours with more people than covers.
- Check the overtime line: one person over 40 hours costs half their rate extra for each extra hour.
- Compare the cost per day with each day's sales.
Honest limits
Rotasprig doesn't read your POS sales; you type them. The labour cost uses the rates you enter, not payroll taxes or benefits. The labour + overtime report and CSV are Pro ($6/month or $49 once); totals per day and week are free.
Questions
How do you calculate labor cost percentage?
Divide labor cost by sales for the same period and multiply by 100. $5,000 of labor on $20,000 of sales is 25%.
What should be included in labor cost?
At least wages for hours worked and overtime premiums; many owners also add payroll taxes and benefits. Be consistent week to week.
Can I see labor cost before the week starts?
Yes. Enter hourly rates in Rotasprig and the scheduled labor cost per day and week updates as you build the schedule.
Does it include overtime?
The Pro labour report adds the weekly overtime premium (threshold and multiplier editable). Free totals use base rates.
Is the schedule maker free?
Yes for up to 8 staff and one saved week. Pro is $6/month or $49 once.
Key facts
- What it is
- The labor cost percentage formula, a small calculator, and a schedule maker that gives the week's labor cost from shifts and rates.
- Price
- Free; Pro $6/month or $49 once
- Free tier
- up to 8 staff and 1 saved week, hours and labour cost totals, warnings, coverage by hour, print and PNG with a small footer line.
- Limits
- Sales are typed by you (no POS link). Free totals at base rates; overtime report and CSV are Pro.
- Runs where
- In your browser. Nothing you type is uploaded; it works offline once loaded.
- Sources
- The app's own engine (worked examples on this page)
- Last updated
More Rotasprig guides
- Free Work Schedule Maker (Printable, No Sign-up)
- How to Make a Work Schedule for Employees (6 Steps)
- Shift Schedule Maker: Split, Overnight and Rotating Shifts
- Rotasprig home: the full app
Not accounting advice. Example data on this page is made up; numbers were worked out by Rotasprig's own engine on 2026-10-08.