Food Cost Calculator

Food cost is the share of ingredient cost in the net selling price of a dish, expressed as a percentage: ingredient cost / net price × 100%. The lower the food cost, the higher the margin on the dish.

A typical target food cost is 25–35%. Meat and fish dishes may run higher (35–40%), while drinks and desserts are usually lower (10–25%). A food cost above 40% on mains usually signals a pricing problem.

Cash margin is the net selling price minus the ingredient cost. Percentage margin is the cash margin divided by the net price times 100%. At a price of 45 and cost of 12, the margin is 33, or 73.33%.

Margin is measured against the selling price, while markup is measured against the cost. For a price of 45 and cost of 12, the margin is 73.33% (33/45) but the markup is 275% (33/12). Markup is always higher than margin.

The gross price is the net price plus VAT: net price × (1 + VAT rate / 100). At a net price of 45 and 8% VAT, the gross price is 48.60.

In Poland, dine-in catering services are usually subject to a reduced 8% VAT rate. Some products, such as alcohol or coffee, may be taxed at 23%. Verify the rate for each specific product.

No. Food cost covers only the cost of ingredients. It excludes labour, energy, rent, packaging and waste. Full profitability requires adding these operating costs on top of food cost.

The calculation assumes no waste and perfect ingredient use. In practice there is waste, larger portions and rising purchase prices, so real food cost is usually higher and the margin lower.

Reduce food cost by optimising recipes and portion sizes, negotiating with suppliers, cutting waste, using seasonal ingredients and regularly reviewing menu prices and each item individually.

No. It quickly estimates food cost and margin on a single dish. A full profitability calculation must include labour, energy, rent, waste and taxes. The results are indicative only.