Labour cost percentage calculator
Enter what the week’s wages came to and what the week sold, and add on-costs such as superannuation if you want them counted. The answer is wages as a share of sales.
A worked example
A small cafe week: $4,200 in wages against $14,000 in sales.
| Counted | Labour cost | Share of sales |
|---|---|---|
| Wages only | $4,200.00 | 30.0% |
| Wages plus 12% on-costs | $4,704.00 | 33.6% |
How it is worked out
labour cost = wages × (1 + on-costs ÷ 100)
labour cost percentage = labour cost ÷ sales × 100, to one decimal place.
What this tool cannot tell you
- What a good percentage is for your trade or your venue
- Which on-costs belong in the figure
- Whether your sales should include GST
Questions
What is a good labour cost percentage?
There is no single right number. It depends on the trade, how much is made on site and how busy you are, so compare your own weeks with each other before comparing with anybody else.
Should on-costs be included?
Include them for the whole cost of staff, such as superannuation and workers compensation premiums. Leave them out when comparing with a figure that does not include them, and say which one you used.
Should sales include GST?
Most businesses use sales excluding GST, because the GST is not theirs to keep. Whichever you choose, use the same every week.