Free restaurant calculator
Restaurant prime cost calculator
Free to use. Nothing you type leaves your browser. Figures checked against official sources on October 1, 2026. Estimates only, not legal or tax advice.
Enter your numbers
Wages, salaries, payroll taxes and benefits.
Food and beverage on hand at the start.
Food and beverage bought in the period.
Food and beverage on hand at the end.
Result
Enter sales, inventory and labor to see your prime cost.
The formula
- Cost of goods sold = opening inventory + purchases − closing inventory
- Prime cost = cost of goods sold + total labor cost
- Prime cost percentage = prime cost ÷ net sales × 100
How to read the result
There is no official benchmark for prime cost. Restaurant accounting guides commonly quote a target of around 60% to 65% of sales, lower for counter service and higher for full service. Treat that as a rule of thumb. Your lease, your prices and your concept decide what you can afford.
Prime cost is most useful as a weekly number. Rent and insurance do not change between Monday and Sunday; food cost and labor do. A weekly prime cost shows a problem while there is still time in the month to fix it.
Count inventory on the same day and at the same time each period, or the cost of goods figure will swing for reasons that have nothing to do with the kitchen. Use total labor, including payroll taxes and benefits, so this figure and your labor cost percentage agree.
Source: National Restaurant Association: restaurant labor costs (Restaurant Operations Data Abstract 2025) · Checked
Massachusetts rules
The rules behind the numbers
Can a restaurant charge staff for shift meals?
Only if the employee chooses to take the meal and actually eats it, after written notice of the plan and the price and the employee's voluntary written acceptance. The maximum charges are $1.50 for breakfast, $2.25 for lunch and $2.25 for dinner.
Full answer and official sourceCan I deduct breakage, register shortages or a walkout from an employee's pay?
Generally no. The Supreme Judicial Court held in Camara v. Attorney General (2011) that an employer may not deduct from earned wages unless the law allows it or there is a "clear and established debt", and an employer's own finding that an employee was at fault does not qualify, even if the employee agreed.
Full answer and official sourceWhat is the difference between a service charge and a house or administrative fee?
A service charge is any fee a customer would reasonably expect to go to the staff, including anything called a gratuity, a tip or a vague "service fee", and all of it must go to the wait staff, service bartenders or service employees who provided the service. A house, administrative or kitchen fee can be kept by the business or shared with the kitchen, but only if you clearly tell customers it is not a tip.
Full answer and official source
Rules checked against official sources on . General information, not legal or tax advice.
Common questions
What is prime cost in a restaurant?
Prime cost is cost of goods sold (food and beverage) plus total labor cost for the same period. It is usually shown as a percentage of net sales and tracked weekly, because these are the costs a manager can change in the short term.
What should restaurant prime cost be?
No official standard exists. Restaurant accounting guides commonly quote a target of around 60% to 65% of sales, with counter-service concepts aiming lower. Use it as a rule of thumb and watch your own trend.
Are staff meals part of cost of goods sold?
The food is used up either way, so it leaves inventory. Many restaurants record staff meals as a separate line so food cost reflects what guests bought. If you charge staff for meals, Massachusetts caps the charge and requires written consent.
Your restaurant remains the employer of record and approves payroll and employment decisions. BOHO is not a PEO, a staffing agency, or legal counsel. A calculator gives an estimate from the numbers you enter. Confirm anything that affects pay or taxes with your payroll provider, attorney or tax adviser.
Want these numbers checked every pay cycle?
Your restaurant remains the employer of record and approves payroll and employment decisions. BOHO is not a PEO, a staffing agency, or legal counsel.