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Food cost

Gross Profit Calculator

Calculate restaurant gross profit from revenue and food cost — or selling price and plate cost. See profit $, gross profit %, food cost %, revenue breakdown, and profit status.

Gross profit formula

Formula
Gross Profit = Revenue − Food Cost
Gross Profit % = (Gross Profit ÷ Revenue) × 100
Food Cost % = (Food Cost ÷ Revenue) × 100

What it means

Gross profit is the food margin — what remains from sales after ingredient cost and before labor, rent, and other operating expenses. Enter revenue and food cost for period totals, or selling price and plate cost for a single dish.

Good to know

  • Gross profit is food margin only — labor and overhead are excluded.
  • Revenue and food cost must refer to the same item or period.
  • Optional discount, tax, and service charge model customer-facing totals only.

Ideal range

  • Does not calculate net profit or prime cost.
  • Does not account for sales mix across the full menu.

Variables

RevenueFood sales
Menu price × covers, or total food revenue for a period. Must be greater than zero.
Food costIngredient cost
Total food cost for the same item or period. Cannot exceed revenue.

Worked examples

Real numbers through the same formula this tool uses.

  1. 1
    Restaurant scenarioExample 1

    $30 revenue, $10 food cost

    Gross profit = $20. Gross profit % = 66.7%. Food cost % = 33.3%.

  2. 2
    Restaurant scenarioExample 2

    $33.33 selling price, $10 plate cost

    Same math in selling-price mode: gross profit = $23.33, food cost % ≈ 30%.

How to use this calculator

Four steps from revenue and cost to gross profit.

  1. Choose calculation mode

    Revenue + food cost for period or multi-cover totals. Selling price + plate cost for single-dish analysis.

  2. Enter revenue and cost

    Use figures from your POS, menu, or Plate Cost / Menu Price calculators.

  3. Review profit and status

    Check gross profit $, gross profit %, food cost %, and the profit status band.

  4. Add optional adjustments

    Model discount, tax, and service charge to see customer total alongside food margin.

Gross profit explained

Gross profit is what remains from food revenue after ingredient cost — before labor, rent, and other operating expenses.

  • What is gross profit?

    Gross Profit = Revenue − Food Cost. It is the dollar margin on food sales available to cover labor, overhead, and profit.

  • Gross profit vs net profit

    Gross profit covers only food cost. Net profit subtracts all operating expenses — labor, rent, utilities, marketing, and more. This calculator is food-margin only.

  • Gross profit % and food cost %

    Gross profit % = Gross Profit ÷ Revenue. Food cost % = Food Cost ÷ Revenue. They always sum to 100% for a single item or period.

  • Two ways to enter the same math

    Revenue + food cost suits period totals or multi-cover sales. Selling price + plate cost suits single-dish analysis. Both produce identical gross profit outputs.

Restaurant benchmarks & best practices

How operators use gross profit in daily decisions.

  • Know your target food cost band

    Many full-service restaurants target 25–35% food cost (65–75% gross profit on food). Fast casual often runs lower food cost with higher volume.

  • Calculate per menu item

    Use selling price + plate cost mode to rank dishes by margin. High sellers with low gross profit deserve menu engineering attention.

  • Reconcile with period totals

    Use revenue + food cost mode to verify item-level math against your Food Cost Percentage Calculator period results.

  • Refresh costs before pricing decisions

    Gross profit is only as accurate as plate cost. Re-cost when supplier invoices change, then re-check with the Menu Price Calculator.

Common mistakes

Errors that distort gross profit analysis.

  • Including labor in food cost

    Gross profit is food margin only. Wages belong in labor cost and prime cost — not in the food cost field.

  • Using net revenue after discounts

    Enter gross menu price or gross revenue first, then model discounts in the optional field — not baked into revenue.

  • Using recipe cost instead of plate cost

    A batch recipe cost is not plate cost. Divide by servings or use the Plate Cost Calculator for the full plated meal.

  • Judging one dish without sales mix

    A low-margin item may be acceptable if it drives beverage or add-on sales. Use gross profit per item alongside contribution analysis.

References & related tools

Food cost cluster and upcoming calculators.

  • Menu Price Calculator

    Set menu price from plate cost using food cost % or markup targets.

  • Plate Cost Calculator

    Sum every plated component for accurate food cost input.

  • Food Cost Percentage Calculator

    Check period-level food cost % across all sales.

  • Prime Cost Calculator (coming soon)

    Combine food and labor for full dish economics.

  • Break-even Calculator (coming soon)

    Find how many covers you need to cover fixed costs at your gross profit margin.

Frequently asked questions

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