Food Costing

Food Cost Calculator

Use this free food cost calculator to check food cost percentage, gross profit, margin, and a target selling price. Enter a known item cost or build the cost from package prices, usable yield, and quantity used.

Food cost calculator

Check food cost percentage, gross profit, and suggested pricing from either a known cost or an ingredient build.

Applied to prices, costs, and profit results.
Item details
Cost method
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Example presets Load example values to see how the calculator works.
Results Updates after calculation
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What this means

Results will appear here with a practical note about what to check next.

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Worked example

Example calculation

If ground beef costs $4.80 per pound and the burger uses 6 ounces, the beef cost is $1.80 before bun, cheese, sauce, garnish, and included sides. At a $16.00 menu price, the calculator shows food cost percentage, gross profit, and the suggested price for the target.

Formula

Calculator formula

Usable unit costUsable Unit Cost = Package Cost / (Package Size x Usable Yield %)
Ingredient costIngredient Cost = Quantity Used x Usable Unit Cost
Total food costTotal Food Cost = Sum of Ingredient Costs
Food cost percentageFood Cost % = (Food Cost / Sales Price) x 100
Gross profitGross Profit = Sales Price - Food Cost

Steps

How to use this tool

  1. 01

    Use quick mode if you already know the total food cost for the item.

  2. 02

    Use ingredient builder mode when invoice or package cost needs to be converted into the amount used on one item.

  3. 03

    Enter package cost, package size, usable yield, recipe quantity used, and the matching units.

  4. 04

    Enter the menu price, package price, or expected sales price.

  5. 05

    Review food cost percentage, gross profit, suggested selling price, and target status before changing prices.

Operator scenarios

When this food cost check is useful

Use this calculator when the pricing question is bigger than a single percentage. It connects ingredient cost, selling price, gross profit, suggested selling price, and target status in one place.

Food cost calculator scenarios
ScenarioWhat to enterWhat to review
New menu itemIngredient cost and planned selling priceWhether the item is near the target before launch
Supplier price increaseUpdated package cost or known item costHow much gross profit changed after the invoice update
Portion standard changeNew recipe quantity usedWhether larger portions still support the menu price
Catering add-onFood cost for one tray, platter, or packageWhether the package price leaves enough gross profit

Cost checklist

What belongs in the food cost number

The food cost number should describe the exact item or package being sold. For a plated item, that usually means the main ingredient, sides, sauces, garnish, included bread, packaging if relevant, and any meaningful trim or yield loss.

Food cost inputs to review
Cost itemWhy it mattersCommon miss
Protein or main itemUsually drives most of the item costUsing old invoice prices
Sides and garnishSmall items add up across high sales volumeTreating garnish as free
Sauces and dressingsBatch cost may need portioningForgetting ramekins or included sauces
PackagingImportant for takeout, catering, and deliveryLeaving containers out of item cost
Yield lossTrim, peel, drain, and cook loss raise usable costCosting from purchase weight only

Worked costing path

From supplier invoice to one plated item

A useful food cost starts with the amount actually used, not the purchase price alone. This example follows one protein from package cost through yield, portion cost, and selling-price review.

Invoice-to-plate food cost example
CheckpointCalculationResult
Purchase cost10 lb case$48.00
Usable yield10 lb x 80%8 usable lb
Usable cost$48 / 8 lb$6.00 per lb
Six-ounce portion$6.00 / 16 x 6$2.25
Other plate ingredientsBun, sauce, cheese, side, garnish$2.55
Total plate cost$2.25 + $2.55$4.80
Food cost at $16$4.80 / $16 x 10030.0%

Decision table

What to review after calculating food cost

Food cost result decision guide
ResultPossible causePractical next check
Over targetCost increased or price is too lowVerify yield, portion size, supplier cost, and market-safe price options
Near targetItem is close to the operating goalMonitor waste, included sides, and contribution dollars
Under targetCost is controlled or price carries roomCheck guest value, sales volume, and whether the portion remains competitive
Strong percentage but weak dollarsLow selling price leaves limited contributionCompare gross profit dollars and labor before keeping the price

Watchouts

Common mistakes

  • Using retail shelf price instead of actual ingredient cost.

  • Leaving out garnish, sauce, waste, or included sides.

  • Mixing purchase units and recipe units without converting first.

  • Entering a case or package cost without also entering package size and usable yield.

  • Looking only at percentage and ignoring gross profit dollars.

Input quality

When to build food cost from ingredients

  • Use package cost and yield when invoice units do not match the recipe amount used.

  • Use usable yield below 100% for trim, peel, bone, drain, or cook loss that affects the usable ingredient amount.

  • Keep quick mode for finished recipe costs, POS exports, or costing sheets that already have the item cost.

Related calculators

Next useful tools

Move to the next calculator when this result needs another pricing, portion, or yield check.

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Recipe Cost Calculator

Build total recipe cost, cost per portion, food cost percentage, and suggested menu price from ingredient package costs.

Ingredient Cost = Quantity Used x Usable Unit Cost

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Cost Per Portion Calculator

Calculate cost per portion from a batch or recipe cost and compare it with target food cost and selling price.

Cost Per Portion = Total Recipe Cost / Number of Portions

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Food Cost Percentage Calculator

Quickly calculate food cost percentage from ingredient cost and selling price, then compare the result with a target range.

Food Cost Percentage = Ingredient Cost / Selling Price x 100

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Menu Price Calculator

Estimate a menu price from food cost and target food cost percentage.

Menu Price = Food Cost / Target Food Cost %

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Catering Cost Calculator

Estimate catering food cost, price per person, total event price, and catering food cost percentage.

Suggested Selling Price = Total Food Cost / Target Food Cost Percentage

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Learn the method

Related guides

Use these guides when you want the assumptions and examples behind the calculator.

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Learn how to calculate cost per portion from total recipe cost, finished servings, and menu price for restaurants, caterers, and food businesses.

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How to Calculate Ingredient Cost

Learn how to calculate ingredient cost from package price, package size, usable yield, unit conversion, and the amount used in a recipe.

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Menu Costing Guide

Learn how to cost menu items from ingredient prices, recipe yield, portions, food cost percentage, contribution margin, and selling price.

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Frequently asked questions

What does this food cost calculator show?

It shows food cost percentage and gross profit dollars from the food cost and selling price you enter. Use it when you want both percentage and dollar context.

What if I do not know my food cost yet?

Use the ingredient builder mode. Enter package cost, package size, usable yield, quantity used, and matching units; the calculator converts those inputs into total food cost before calculating margin.

What is a good food cost percentage?

Many restaurants target roughly 28% to 35%, but the right range depends on concept, labor model, service style, and market pricing.

Should catering use the same food cost target as a restaurant menu?

Not always. Catering often has different labor, delivery, rental, staffing, and waste assumptions, so food cost is only one part of the quote.