Free tool · 4 minutes
Real labor cost calculator
The wage is not the cost. Add payroll taxes, benefits and hours to see what your team really costs.
Your result
Fill in the fields and press calculate. The result will appear here.
What it measures and how to read it
Total cost adds up gross wages, payroll taxes and benefits. It is then divided by paid hours to get the real cost per hour.
Labor cost is total cost divided by revenue. Cost per cover divides it by the covers in the period; productivity compares revenue with every dollar of staff cost.
These ranges are a guide and depend on the country, the collective agreement and the service model. They are no substitute for a labor review.
These ranges are a guide for independent full-service restaurants in LATAM. They are no substitute for your income statement or an accounting review.
Three decisions after the result
1. Look at the gap
Compare the result with your target. If it is out of range, do not change everything at once: pick the lever with the biggest impact.
2. Put a number on it
Turn the gap into dollars per month and per year. That tells you whether it is worth a meeting, a supplier change or a price increase.
3. Run a test
Set one action for the next 7 days, measure the result and come back to the tool. One decision per week.
Download the weekly P&L template Email access; includes 12 weeks and the prime cost and EBITDA columns.
Frequently asked questions
What do payroll taxes include?
Employer contributions, insurance, vacation and statutory benefits that depend on the country. If you do not have the exact figure, use the percentage on your payroll or ask your accountant.
What are benefits?
Meals, transport, uniforms, training or other costs you cover for the team that do not appear in gross wages.
Why measure cost per cover?
Because it links the team to service volume. A low labor cost with few covers can hide an oversized team.
Reviewed by the Editorial board · Last reviewed: October 2026 · Method and assumptions
Keep reading
View all
One number, one decision
One idea you can apply to your restaurant: costs, sales, team or operations. No filler and no promises of endless growth.