Free tool · 4 minutes
Prime cost calculator
The number that decides whether your restaurant wins or loses. Add food and labor, compare it with your target and see the yearly impact.
Your result
Fill in the numbers and press calculate. Your result will appear here.
What it measures and how to read it
Food cost is calculated as purchases plus opening inventory minus closing inventory. Prime cost adds that food cost to your labor cost.
The gap is the difference between your prime cost and the target you choose. The monthly impact is that gap applied to your sales; the annual figure multiplies it by twelve.
These ranges are a guide and do not replace an income statement. Check with your accountant before making tax decisions.
These ranges are a guide for independent full-service restaurants in LATAM. They do not replace 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, don't adjust everything at once: pick the lever with the biggest impact.
2. Put a dollar figure on it
Turn the gap into dollars per month and per year. That is how you know whether it deserves a meeting, a supplier change or a price increase.
3. Run a test
Pick 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 does prime cost include?
Food cost and labor cost. Some operators add discounts or comps; we leave them out here so you can compare on the same base.
How do I calculate food cost?
Purchases for the period plus opening inventory minus closing inventory. If you already have the figure from your P&L, you can use it directly as purchases and leave inventory at zero.
What range is normal?
As a guide, many independent full-service restaurants aim for a prime cost between 60% and 65%. The range changes with the concept, the country and the service model.
Why does the annual impact matter?
Because a two-point gap looks small in a single month, but it becomes a cash problem when you multiply it by twelve.
Reviewed by the Editorial board · Last review: October 2026 · Method and assumptions
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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.