Free calculator
Labor Cost Calculator
See whether your labor line fits your revenue and franchisor benchmark, with optional hours × wage cross-check.
Your inputs
Total hours paid this month, used to sanity-check labor cost against your schedule
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
Email these results
A copy of your inputs and numbers, so you can compare scenarios later.
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.
Labor is usually the largest controllable cost in a wellness studio, and the fastest way to erase a location's margin. Tracking it as a percentage of revenue — rather than a raw dollar figure — is how operators tell whether they are staffed for the volume they actually have.
This calculator compares your planned or actual labor spend against revenue and a target labor percentage, flagging when you are over-staffed for the traffic and by how much.
The formula
Labor cost % = total labor cost ÷ revenue × 100. Variance = actual labor % − target labor %.
Related guide: How to staff a fitness studio
Frequently asked questions
- What is a good labor cost percentage for a fitness studio?
- Boutique fitness and wellness studios commonly target labor at roughly 30%–45% of revenue, depending on format and how instructor-intensive the concept is. Class-based studios with per-session pay tend to run higher than self-serve models.
- Should labor percentage include payroll taxes and benefits?
- For a true picture, yes — use fully loaded labor cost including payroll taxes, benefits, and any bonuses, not just base wages, when comparing against your target.
- How do I bring labor cost down without cutting service?
- Match staffing to demand by class and daypart, cross-train roles, and adjust the schedule as membership ramps rather than staffing for peak at all times.