When to use this calculator
Calculate ingredient cost as a share of a menu item’s selling price. Use prices on a consistent tax basis and include relevant ingredient waste.
Explore the kitchen costs calculators for other questions in this topic. For a related calculation, use the Food Waste Cost Calculator: Put a monetary value on entered edible food waste.
PUTTING IT INTO PRACTICE
Food Cost Percentage: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Ingredient cost | 3 |
| Selling price | 12 |
| Result | 25 % |
- Check the input labels and enter the example values above.
- Apply the relationship: Food cost (%) = ingredient cost ÷ selling price × 100.
- The result is 25 %, rounded for display.
How to interpret your result
Use prices on a consistent tax basis and include relevant ingredient waste.
Decide whether costs include waste, labour, utilities and tax before comparing results. Food cost percentage uses selling price as its base, whereas a markup uses cost. Unsaleable portions can raise cost per saleable serving.
Frequently asked questions
Does ingredient cost per serving include labour?
Only if labour is included in the cost you enter. The tool cannot infer unentered overhead or preparation costs.
How do I use the food cost percentage calculator?
Enter ingredient cost, selling price. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Food cost (%) = ingredient cost ÷ selling price × 100.
What should I check before using the result?
Use prices on a consistent tax basis and include relevant ingredient waste.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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