Food Cost & Menu Margin Calculator
Enter ingredient cost and selling price to get food-cost percentage, gross profit, and margin — plus a suggested price for your target food-cost %.
Food cost % = ingredient cost ÷ selling price. Most restaurants aim for 28–35%. To hit your target, price the item at about $11.67.
What is food cost percentage?
Food cost percentage is the share of a menu item's price that goes to its ingredients: ingredient cost ÷ selling price × 100. It's the single most important number in menu pricing. Most profitable restaurants keep food cost between 28% and 35% — low enough to cover labor, rent, and overhead while leaving a margin.
How to price a menu item
- Add up the ingredient cost of one portion (including garnish and waste).
- Set a target food cost % — 30% is a common starting point.
- The calculator's suggested price = ingredient cost ÷ target %.
Frequently asked questions
What food cost percentage should I aim for?
28–35% is typical. Higher-end and ingredient-heavy dishes can run higher; drinks and sides usually run much lower, which is why a balanced menu matters more than any single item.