Payroll Cost Percentage Calculator
Calculate payroll costs as a percentage of revenue to check whether staffing costs are in a sustainable range for your business.
Your results
Calculation breakdown
- Payroll cost %
- (Total payroll cost ÷ Revenue) × 100
Worked example
A business with $90,000 in total payroll costs and $300,000 revenue has a payroll cost percentage of 30%.
Assumptions
- Include gross wages, superannuation guarantee and on-costs like workers' compensation.
- Benchmarks vary widely between labour-intensive and capital-intensive industries.
- This is a general ratio, not payroll tax or award compliance advice.
How this calculator works
Divide total payroll costs, including super and on-costs, by revenue for the same period to see payroll as a percentage of revenue. Many Australian small businesses monitor this ratio to control labour costs.
Frequently asked questions
What should I include in payroll costs?
Include gross wages, superannuation guarantee contributions, workers' compensation premiums and payroll tax if it applies.
What's a typical payroll cost percentage?
It varies hugely by industry — labour-intensive services can be over 50%, while retail may target 15–25%, so compare to your own sector.
Why track this ratio over time?
A rising ratio without matching revenue growth can signal overstaffing or the need to review pricing and productivity.
Results are estimates only and are not financial, tax, legal or credit advice.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.