Labor Cost % — what your number means
Compute your labor cost percentage, see how it compares to a regional segment estimate, and walk through the most likely causes if it is off-band.
Last reviewed: Last reviewed 2026-05-04
Calculator
Methodology & sources
Formula: labor_cost ÷ revenue. Both numbers should cover the same period.
Worked example: $25,000 labor ÷ $100,000 revenue = 25.0%.
Universal bands (segment-agnostic):
- Under 20% — low (verify all labor cost included)
- 20–30% — target
- 30–35% — high
- 35%+ — critical
Regional segment band on the result is composed from NRA segment guidance × BEA Regional Price Parities. See methodology — regional bands.
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Not sure which number to focus on? Try the integrated review — one form, all four metrics.