Food Cost Calculator
Food cost percentage of a dish, the menu price for a target food cost, and labour and prime cost as a share of sales.
Result…
How it's calculated
Food cost % = ingredient cost ÷ menu price × 100 Menu price = ingredient cost ÷ (target % ÷ 100) Labour % = labour ÷ sales × 100 · Prime cost % = (food + labour) ÷ sales × 100
Food cost percentage is the share of a dish's price that goes on ingredients. To price a dish, divide its ingredient cost by the food cost percentage you aim for: at 30%, a portion that costs 3 to make sells for 10. For a whole period, food cost is opening stock plus purchases minus closing stock, divided by food sales. Labour cost percentage is wages and the costs that come with them divided by sales, and prime cost adds food and labour together. Use prices and sales without sales tax or VAT. Targets differ by kind of restaurant and by country, so compare against your own past figures as well. For margin and markup on any product, use the profit margin calculator.
Your numbers, step by step
About the Food Cost calculator
This food cost calculator answers three questions restaurant owners, chefs and caterers ask when they price a menu. What share of a dish's price goes on ingredients? What should the dish sell for to hit a target food cost percentage? And for a whole week or month, what are the food cost, labour cost and prime cost as a percentage of sales? Food cost percentage is the ingredient cost divided by the menu price, and the price for a target is the ingredient cost divided by that target. Prime cost adds food and labour together, the two biggest costs in most kitchens. Every answer shows the division with your numbers, so you can check it against your own records. It works in any currency; use prices and sales without sales tax or VAT. For margin and markup on other products, try the profit margin calculator.
How to use it
- Pick what you want under “I want”: “Food cost % of a dish”, “Price for a target %” or “Labour and prime cost”.
- For a dish, enter the “Ingredient cost per portion”: every ingredient on the plate, sauce and garnish included.
- Enter the “Menu price” without tax, or a “Target food cost” in percent to get the price to charge.
- For a period, enter the “Food sales for the period”, the “Food cost for the period” (opening stock + purchases − closing stock) and the “Labour cost for the period”.
- Read the percentage, the gross profit per portion or the amount left after prime cost, and the steps below it.
Worked example
A dish costs 4.20 in ingredients and sells for 14. Food cost is 4.20 ÷ 14 × 100 = 30%, leaving a gross profit of 9.80 per plate. To hit a 28% target on a dish that costs 3.60, the price is 3.60 ÷ 0.28 = 12.86. Over a month with 80,000 in sales, 24,000 of food and 22,400 of labour, food cost is 30%, labour 28% and prime cost 46,400, or 58% of sales, leaving 33,600 for rent, other costs and profit.
Updated
Questions people ask
How do I calculate food cost percentage?
Divide the ingredient cost of a portion by its menu price and multiply by 100. A plate costing 4.20 that sells for 14 has a food cost of 30%.
How do I price a menu item from a target food cost?
Divide the ingredient cost by the target written as a decimal. At a 28% target, a dish costing 3.60 sells for 3.60 ÷ 0.28 = 12.86, which you can then round to a price that suits your menu.
What is prime cost in a restaurant?
Prime cost is the cost of food (or all goods sold) plus the cost of labour, including what you pay on top of wages. As a percentage it is that total divided by sales over the same period.
What is a good food cost percentage?
There is no single right figure: it depends on the kind of restaurant, the menu, local prices and the country. Compare against your own past months and your plan, and look at prime cost as well, since a dish with a higher food cost can need less labour.
Should I include sales tax or VAT in the menu price?
No. Use prices and sales without sales tax or VAT, because that money is passed on to the government and is not yours to cover costs.
Why does my period food cost differ from my dish costings?
Waste, spoilage, staff meals, over-portioning and price changes all show up in the period figure but not in a recipe costing. A gap between the two is worth investigating with your accountant or stock records.