Recipe Cost Calculator
Find food cost percentage and profit from ingredient cost and menu price.
What it does
Menu pricing starts with knowing what a dish costs to make. The food cost percentage is the ingredient cost divided by the menu price, and it tells you whether a dish prices correctly for a restaurant or food business.
The tool above takes ingredient cost and menu price, then returns food cost percent, profit per serving, and markup. Enter the cost of the ingredients in one serving and the price you charge, and read the result.
A common target food cost is 28 to 35 percent, though it varies by concept and ingredient. Fine dining may run higher on luxury items, while quick service often targets lower.
Food cost only covers ingredients. Labor, rent, utilities, packaging, and waste come out of the profit, so a 33 percent food cost does not mean 67 percent profit.
How to use
- Enter the ingredient cost for one serving.
- Enter the menu price you charge for that serving.
- Read food cost percent first.
- Read profit per serving next.
- Read markup to see the price multiple over cost.
Formula
- cost
- Ingredient cost for one serving in dollars.
- price
- Menu price charged for one serving in dollars.
- percent
- Ingredient cost as a percent of menu price.
- profit
- Price minus cost in dollars.
- markup
- Price as a multiple of cost.
Food cost is ingredient cost only. Labor, overhead, waste, and packaging are outside this math, so use the result as a pricing guide, not a profit statement.
Worked example
Example: $4.00 ingredient cost, $12.00 menu price
Ingredient cost 4.00, menu price 12.00.
- Food cost percent: 4.00 / 12.00 x 100 = 33.3 percent.
- Profit: 12.00 minus 4.00 = $8.00 per serving.
- Markup: 12.00 / 4.00 = 3x.
- Tool shows food cost 33.3 percent, profit $8.00, markup 3x.
Reference table
| Ingredient cost | Food cost percent | Profit per serving |
|---|---|---|
| $3.00 | 25.0 % | $9.00 |
| $4.00 | 33.3 % | $8.00 |
| $5.00 | 41.7 % | $7.00 |
| $6.00 | 50.0 % | $6.00 |
Limits
- Food cost covers ingredients only, not labor or overhead.
- A low food cost does not guarantee profit after rent and wages.
- Portion control matters: the cost must match the actual served amount.
- Target percentages vary by concept and menu mix.
Common mistakes
- Pricing by food cost percent alone without labor and rent.
- Using purchase cost instead of the cost of the actual served portion.
- Ignoring waste, trim, and spoilage that raise real ingredient cost.
- Treating price minus food cost as take home profit.
- Copying another restaurant's target percent without your own costs.
Try it yourself
Quick checks. Answers sit tucked under each question.
$2.50 cost, $10.00 price?
Food cost 25.0 percent, profit $7.50, markup 4x.
$4.00 cost, $12.00 price?
Food cost 33.3 percent, profit $8.00, markup 3x.
$6.00 cost, $12.00 price?
Food cost 50.0 percent, profit $6.00, markup 2x.
Questions
What is food cost percent?
Ingredient cost divided by menu price, times 100. It shows what share of the price goes to ingredients.
What is a good food cost percent?
Often 28 to 35 percent, but it depends on the concept, menu mix, and local costs.
Does food cost include labor?
No. It is ingredients only. Labor, rent, utilities, and packaging are separate.
Is markup the same as profit?
No. Markup is price over cost as a multiple; profit is price minus cost in dollars.
Can I use this for catering?
Yes for ingredient cost per serving; add labor, transport, and overhead separately.
Should portion size match the cost?
Yes. Cost the exact amount served, not the amount bought, or the percent will be wrong.