What this calculator works out
Cost per portion. For each ingredient, the share of the pack the recipe uses: if a 5 kg bag cost 9.00 and the recipe uses 125 g, that ingredient costs 9.00 × 125 ÷ 5,000 = 0.23. The calculator converts between kilos and grams, litres and millilitres, ounces, pounds, cups and spoons for you. Add them up, divide by the portions the recipe makes, and add what each plate costs besides its ingredients, like a takeaway box.
Food cost percentage. How much of the price goes on the food: cost per portion ÷ price × 100. It is measured on the price before tax, because the tax isn’t yours to keep.
Suggested menu price. The price that makes the food cost exactly your target, rounded up so it looks right on a menu. “Auto” rounds to a tenth of the price’s size: 3.78 becomes 3.80 and 37.80 becomes 38. You can pick the step instead, from 0.05 to 1,000, to suit your currency.
The formulas
Ingredient cost = price paid × amount used ÷ pack size
Cost per portion = ingredient costs ÷ portions + other costs per portion
Food cost % = cost per portion ÷ price before tax × 100
Menu price = cost per portion ÷ target food cost % × 100 × (1 + tax %)
A worked example
One plate of tomato pasta, at a target food cost of 28%, in a place whose menu prices include 10% tax:
| Ingredient | Paid | Used | Cost |
|---|---|---|---|
| Pasta | 9.00 for 5 kg | 125 g | 0.23 |
| Tomatoes, tinned | 2.40 for 2.5 kg | 150 g | 0.14 |
| Hard cheese | 18.00 for 1 kg | 20 g | 0.36 |
| Olive oil | 12.00 for 1 l | 15 ml | 0.18 |
With 0.15 for basil, garlic and salt, the plate costs 1.06. At 28% food cost the price before tax is 1.06 ÷ 0.28 = 3.78, and with the tax 4.16, rounded up to 4.20. At 4.20 the food cost is 27.7% and each plate leaves 2.76 towards rent, wages and profit.
What food cost to aim for
Many restaurants aim for a food cost between 25% and 35% of the price, and lower on drinks, but the right number is yours: it depends on your rent, your wages and how many plates you sell. A dish with a high food cost can still be worth it if it sells well and brings people in, as long as the menu as a whole stays near your target.
Prices go up, so cost your dishes again when a supplier changes theirs, and check your best sellers first.
Questions
What is a good food cost percentage?
Many restaurants and cafés aim for 25% to 35% of the menu price before tax. Places with high rent or many staff usually need a lower one. Work out your own from your costs: what is left after food has to pay for everything else.
Should the food cost include tax?
No. Work it out on the price before tax (VAT, GST or sales tax), since the tax goes to the government. If your menu prices include tax, enter its rate and the calculator takes it out before it works out the food cost.
How do I cost an ingredient I buy by the piece or the dozen?
Choose “pieces” or “dozen” as the unit: eggs bought at 3.60 a dozen and 2 used in the recipe cost 0.60. Count units only convert to each other, not to weights.
What if the recipe makes several portions?
Enter what the whole recipe uses and how many portions it makes: the calculator divides the cost between them. A cake that makes 12 slices, or a pot of soup that makes 20 bowls, is costed once.
How do I put these prices on a menu?
Priceboard is a free app to make a menu on your phone, print it as a PDF and share it with a QR code. When your prices change, you edit the menu and publish the changes: the printed QR code shows the new prices.
Is what I type saved or sent anywhere?
It is kept in your browser on this device, so it’s still there when you come back, and it is never sent to us or anyone else. The calculator works entirely on your device. “Clear all” removes it.