Food cost calculator

How to calculate food cost

Food cost % = cost of ingredients in one portion ÷ menu price × 100

1. List every ingredient that goes into one portion, including packaging that leaves with it (cup, lid, box).
2. For each one, multiply the amount used by its purchase price. Prices are usually per kg, litre or piece, while recipes use grams, millilitres or pieces, so divide by 1000 for kg and litres.
3. Add the lines up: that is the food cost of one portion. If the recipe makes several portions, divide by their number.
4. Divide the food cost by the menu price and multiply by 100 to get the food cost percentage.

Worked example: a cappuccino

18 g of coffee at 1,200 per kg costs 18 × 1,200 ÷ 1,000 = 21.60. 180 ml of milk at 90 per litre costs 16.20. Add a cup (8.00) and a lid (3.00): one cappuccino costs 48.80. Sold at 180, the food cost is 48.80 ÷ 180 × 100 ≈ 27.1%, leaving a gross margin of 131.20. To hit exactly 30%, the price would be 48.80 ÷ 0.30 ≈ 162.67.

What is a good food cost percentage?

There is no single right number: it depends on the dish, your prices and your other costs. A common rule of thumb for restaurants is roughly 25–35% of the menu price; drinks such as coffee often run lower and complex dishes higher. Track it per dish and watch how it changes when purchase prices move.

Questions

What is the difference between food cost and markup?

Food cost % compares the ingredient cost with the menu price (48.80 of 180 = 27.1%). Markup compares the price with the cost (180 is 269% more than 48.80). Both describe the same dish from different sides.

Should packaging be included?

Yes, if it leaves with the order: cups, lids, boxes and bags are part of what one portion costs you.

Why are recipe amounts in grams but prices per kilogram?

That is how products are bought and how recipes are written. The calculator converts automatically: 18 g at 1,200 per kg is 21.60.