FREE TOOL
Prime Cost Calculator
COGS plus labor, as a share of revenue — the one number most operators check every week before anything else. Free, no signup.
Prime cost
—
Prime cost %
—
Widely cited targets: 55-60% for quick-service, 60-65% for full-service casual, up to 68% for fine dining. Most operators treat 60% or below as the healthy zone regardless of segment, and track the number weekly rather than waiting for month-end.
Why prime cost gets checked before anything else
COGS and labor are the two biggest, most controllable costs in any kitchen — prime cost combines them into the one number that moves first when something's wrong.
Frequently asked questions
- What counts as labor cost in this formula?
- All of it: hourly wages, salaries, payroll taxes, workers' compensation, and benefits — not just the number on a payroll summary. Leaving out taxes and benefits is the most common way prime cost gets understated.
- What's a healthy prime cost percentage?
- Roughly 55-60% for quick-service, 60-65% for full-service casual, and up to 68% for fine dining, though price point and service model shift these. Many operators simply target 60% or below as a segment-independent rule of thumb.
- How often should I calculate prime cost?
- Weekly, not monthly — the whole value of the metric is catching a labor or COGS drift within days instead of finding out at month-end once it's already cost real money.
- What's the difference between prime cost and food cost percentage?
- Food cost percentage is COGS alone, divided by revenue. Prime cost adds labor on top of COGS — it's the broader number because payroll is typically as large a cost driver as ingredients, sometimes larger.
- Does this calculator store or send my data anywhere?
- No — all calculations run locally in your browser; nothing is saved or transmitted.
15 minutes to see if CalcMenu changes your day-to-day.
We won't sell you software. We'll look at what's wearing you down today and check together if CalcMenu fits.
Talk to a human — 15 min