Tools
Prime Cost Calculator
Cost of sales and labour read together, because they trade against each other.
Your numbers
Food, beverage and packaging.
All wages, benefits and related charges for the period.
Results
- Prime cost % of revenue
- 55.0%
- Prime cost
- 137,500
- Cost of sales %
- 30.0%
- Labour %
- 25.0%
- Remaining for fixed costs
- 112,500
Results update as you type. Nothing you enter is sent to us.
To read cost of sales and labour as one number, since they move against each other.
Food cost and labour cost are usually reviewed separately, which hides the trade between them: a cheaper ingredient that takes longer to prepare moves cost from one line to the other without helping the business.
Prime cost reads them together. Enter revenue, cost of sales and total labour, and the calculator returns prime cost in money and as a percentage of revenue, plus what remains to cover fixed costs.
How to read this
There is no universal prime cost target. What it should be depends on the concept, the service model and the rent, and the useful comparison is against your own trend rather than against a published figure.
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