Food Costing

Food Cost Calculator

Estimate food cost percentage and gross profit from item cost and selling price before making pricing decisions.

Reviewed May 16, 2026

Food cost calculator

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

Item details

Item name

Cost method

How do you want to enter food cost?

Known cost Use a finished item cost. Ingredient build Add rows to total the cost.

Food cost

Price target

Sales price Target food cost %

Example presets Load example values to see how the calculator works.

Results Updates after calculation

Enter values to calculate.

What this means

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

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

01
Use quick mode if you already know the total food cost for the item.
02
Use ingredient builder mode when invoice or package cost needs to be converted into the amount used on one item.
03
Enter package cost, package size, usable yield, recipe quantity used, and the matching units.
04
Enter the menu price, package price, or expected sales price.
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
Scenario	What to enter	What to review
New menu item	Ingredient cost and planned selling price	Whether the item is near the target before launch
Supplier price increase	Updated package cost or known item cost	How much gross profit changed after the invoice update
Portion standard change	New recipe quantity used	Whether larger portions still support the menu price
Catering add-on	Food cost for one tray, platter, or package	Whether 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 item	Why it matters	Common miss
Protein or main item	Usually drives most of the item cost	Using old invoice prices
Sides and garnish	Small items add up across high sales volume	Treating garnish as free
Sauces and dressings	Batch cost may need portioning	Forgetting ramekins or included sauces
Packaging	Important for takeout, catering, and delivery	Leaving containers out of item cost
Yield loss	Trim, peel, drain, and cook loss raise usable cost	Costing from purchase weight only

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.

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

Guide Food Costing Practical explainer

Food Cost Formula

Understand the food cost formula, food cost percentage equation, gross profit, and how to use food cost math for menu pricing.

Read guide

Guide Food Costing Practical explainer

How to Calculate Food Cost Percentage

Learn the food cost percentage formula, calculate cost per portion, and use the result to check restaurant, catering, or food business pricing.

Read guide

Guide Food Costing Practical explainer

How to Calculate Recipe Cost

A practical method for adding ingredient costs, yield, and portion cost before pricing a recipe.

Read guide

Guide Food Costing Practical explainer

How to Calculate Cost Per Portion

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

Read guide

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.