Restaurant Labor Cost % Calculator (US & AU)
Weekly labor cost as a percentage of sales, with super guarantee or FICA on-costs and the hours you would need to cut to hit your target. Every formula and assumption is listed below. Change any default that does not match your venue.
Last updated
Interactive calculator
Labor cost % of sales (weekly)
Wages
US$8,940
Total labor cost
US$9,982
Labor cost %
39.9%
Over target by US$2,482
Hours to cut to hit target
131
at your average hourly rate
Formula & assumptions
Wages = hourly staff hours × average hourly rate + salaried wages for the week. Total labor cost = wages × (1 + statutory on-cost % + other on-cost %). Labor cost % = total labor cost ÷ net sales (excluding tax/GST) × 100.
Statutory on-cost default: AU 12% super guarantee (ATO, checked 4 Nov 2026); US 7.65% employer Social Security + Medicare (IRS Topic 751, checked 4 Nov 2026). "Other" covers workers' comp, payroll tax, FUTA/SUTA, leave loading and so on. It is your number, not a benchmark.
The target % is your own goal. We do not publish an industry benchmark because we have not found an official source for one.
Next step: put this number in a tool that tracks it every week
Deputy lists a free trial on its pricing page (checked 4 Nov 2026). US operators can also compare 7shifts and Homebase.
Methodology
- Wages = hourly staff hours × average hourly rate + salaried wages for the same week.
- Total labor cost = wages × (1 + statutory on-cost % + other on-cost %). Labor cost % = total labor cost ÷ net sales (excluding sales tax or GST).
- Statutory on-cost defaults: Australia 12% super guarantee (ATO table, rate from 1 July 2025 onwards); US 7.65% employer Social Security (6.2%) plus Medicare (1.45%) (IRS Topic 751). Both checked 4 November 2026.
- Hours to cut = (total labor cost − target cost) ÷ loaded hourly rate. We do not publish an industry benchmark labor %, because we have not found an official source for one.
Sources
- ATO: super guarantee percentage (checked 4 November 2026)
- IRS Topic 751: Social Security and Medicare withholding rates (checked 4 November 2026)
Related comparisons
FAQ
Should labor cost % include super or payroll taxes?+
Yes, if you want the real cost. This calculator adds super guarantee (AU) or employer FICA (US) and lets you add workers comp, payroll tax and other on-costs as a separate percentage.
What is the Australian super guarantee rate in 2026?+
12% of qualifying earnings for 1 July 2026 to 30 June 2027, per the ATO super guarantee table checked 4 November 2026. From 1 July 2026 it is paid each payday under Payday Super.
Does US employer FICA have a wage cap?+
The 6.2% Social Security portion applies up to the annual wage base; Medicare 1.45% has no cap. For most hourly restaurant staff the cap is not reached. See IRS Topic 751.
Is 30% a good labor cost?+
The target is your own goal. We have not found an official benchmark, so we do not recommend a number.
General information only. Not payroll, legal or financial advice. Check figures with your accountant or payroll provider. How we research.