Food Cost Percentage Calculator
Our free food cost percentage calculator tells you how much of your menu price goes to ingredients — the single most important number on a restaurant P&L. Enter your per-dish ingredient cost and menu price, and instantly see your actual food cost %, gross profit per dish, gross margin, and the menu price you'd need to hit your target food cost percentage.
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Enter your ingredient cost and menu price to see your food cost percentage.
How to use this calculator
Start with your ingredient (plate) cost: add up everything that goes onto the plate for one serving — protein, produce, sauces, garnish, and a realistic allowance for waste and spoilage. Receipts from your supplier plus a few weeks of tracking portions will give you a solid number.
Enter your current menu price for the dish. The calculator instantly shows your actual food cost percentage, your gross profit per dish in dollars, and your gross margin percentage.
Finally, set a target food cost %. The tool works backwards to tell you the menu price you'd need to hit that target at your current ingredient cost — handy when food prices rise and you need to reprice a dish without guessing.
How it works
The math is straightforward arithmetic:
- Food cost % = ingredient cost ÷ menu price × 100
- Gross profit per dish = menu price − ingredient cost
- Gross margin % = gross profit ÷ menu price × 100
- Menu price for target % = ingredient cost ÷ (target % ÷ 100)
For example, a dish that costs $3.50 in ingredients and sells for $12.00 has a food cost percentage of 3.50 ÷ 12.00 × 100 = 29.2%, a gross profit of $8.50 per dish, and to hit a 30% target it would need to be priced at $11.67.
Two things to keep in mind. First, this assumes your plate-cost number is accurate — garbage in, garbage out, so include waste and portion drift. Second, food cost percentage covers ingredients only; it excludes labor, rent, utilities, and other overhead. When operators add labor cost to food cost, they call that combined figure "prime cost," which typically runs around 60–65% of revenue.
Frequently asked questions
What is a good food cost percentage?
The industry rule of thumb is 28–35% of menu price. Quick-service restaurants often run below 30%, while fine dining with premium ingredients may sit above 35%. A percentage under about 28% usually means your menu is under-priced or portions are shrinking, and consistently above 35% makes it hard to stay profitable after labor and overhead.
What counts in food cost — ingredients only, or labor too?
Food cost percentage includes only what goes on the plate: the cost of ingredients (including waste and spoilage) divided by the menu price. Labor, rent, utilities, and overhead are not included. When you add labor costs to food costs, operators call that combined number prime cost, which ideally stays under about 60–65% of revenue.
How can I lower my food cost percentage?
Reduce waste and portion inconsistency, negotiate with suppliers, buy seasonally, adjust recipes to use lower-cost ingredients, trim spoilage through better prep and FIFO storage, and — when the market justifies it — raise menu prices so your costs stay the same share of revenue.
What's the difference between food cost percentage and prime cost?
Food cost percentage measures ingredient cost as a share of menu price. Prime cost is food cost plus labor cost, the two biggest controllable expenses in a restaurant, expressed as a share of revenue. Watching both matters: a healthy food cost percentage can still sink you if labor runs too high.