Food Cost Percentage Calculator
Food cost percentage is a restaurant or catering planning metric that compares ingredient cost with the price charged for a serving. It helps standardize a menu review, but it represents only one part of unit economics.
How to use this calculator
- Use ingredient cost and selling price for the same single serving.
- Check that units, denominator definitions and time periods are consistent before comparing scenarios.
- Run a second scenario when an assumption is uncertain.
Formula used by food cost percentage calculator calculator
Food cost (%) = ingredient cost per serving / pre-tax selling price × 100.
- Food cost (%) = ingredient cost per serving / pre-tax selling price × 100.
- Results depend on portion sizes, yield, supplier prices and whether the selling price includes tax. The amount left is not profit.
- The tool performs arithmetic on the values entered and does not validate assumptions against outside records.
Worked examples
Worked example
Ingredients cost €3.60 and the pre-tax menu price is €12.00.
€3.60 ÷ €12 × 100 = 30%; €8.40 remains before other costs.
Ingredient cost is 30% of the entered selling price.
Understanding the result
Food cost percentage is a restaurant or catering planning metric that compares ingredient cost with the price charged for a serving. It helps standardize a menu review, but it represents only one part of unit economics.
Results depend on portion sizes, yield, supplier prices and whether the selling price includes tax. The amount left is not profit.
Important notes
Results depend on portion sizes, yield, supplier prices and whether the selling price includes tax. The amount left is not profit.
Treat this output as an estimate tied to the stated inputs. For regulated, safety-critical, tax or professional decisions, verify applicable official guidance and specifications.
Frequently asked questions
Should labour be included in food cost?
This simple version measures ingredient cost only; track labour separately or define a broader cost metric.
Should the menu price include VAT or sales tax?
Use the pre-tax price for this ratio unless your business deliberately uses a different consistent convention.
How should I interpret the result?
Results depend on portion sizes, yield, supplier prices and whether the selling price includes tax. The amount left is not profit.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
- How to Calculate ROI — Learn the return on investment formula and how to interpret profit, cost, and percentage return.
- How to Calculate Break-Even Point — Learn the break-even formula for units and revenue and understand fixed costs, price, and variable costs.
- Markup — Learn what markup means, how markup is calculated from cost and selling price, and how it differs from margin.
This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.