Free calculator
Labor Cost Calculator
See whether your labor line fits your revenue and franchisor benchmark, with optional hours × wage cross-check.
Your inputs
Your results
- Actual labor %
- 35.0%
- Target labor %
- 32.0%
- Variance
- +3.0% ($2,160)
- Revenue per labor hour
- $73
Implied labor from hours × wage: $21,560
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How this is calculated
Labor is the largest controllable cost for most fitness and service studios. Compare actual spend to your franchisor benchmark weekly.
- Actual labor % = total monthly labor cost ÷ monthly revenue × 100. Include wages, payroll taxes, benefits, and contractor payments tied to delivery.
- Target labor % = the benchmark you or your franchisor set (often 30 to 35% for boutique fitness, estimate).
- Variance = actual labor % minus target. Positive variance means you are over the benchmark.
- Implied labor from hours = paid hours × average hourly wage. Compare to your payroll report to catch scheduling vs. payroll mismatches.
- Revenue per labor hour = monthly revenue ÷ paid hours. Useful for coach and therapist productivity tracking.
Worked example
At $72K revenue and $25.2K labor, actual labor is 35% vs a 32% target: $2,160 over benchmark for the month (estimate).
All outputs are planning estimates, not guarantees. Consult the brand FDD and your advisors for decisions.