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Food cost

Menu Price Calculator

Set menu price from plate cost using food cost % or markup %. See recommended selling price, gross profit, optional tax/service/discount, and revenue summary.

Menu pricing formulas

Formula
Food cost mode: Selling Price = Plate Cost ÷ (Food Cost % ÷ 100)
Markup mode: Selling Price = Plate Cost × (1 + Markup % ÷ 100)
Gross Profit = Selling Price − Plate Cost
Food Cost % = (Plate Cost ÷ Selling Price) × 100

What it means

Food cost % pricing targets a percentage of menu price for ingredients. Markup % pricing adds a margin on top of plate cost. The two methods produce different results — 30% food cost is not the same as 30% markup.

Good to know

  • Plate cost includes all food components on the plate.
  • Gross profit is food margin only — labor and overhead are excluded.
  • Tax is applied to net price plus service charge when optional fields are used.

Ideal range

  • Does not model competitive pricing, psychology, or market positioning.
  • Labor and prime cost require separate calculators.

Variables

Plate costIngredient cost per plate
Total food cost for one plated meal — from the Plate Cost Calculator or cost sheet.
Food cost %Target food cost
Desired ingredient cost as a percent of menu price. Typical full-service range: 25–35%.
Markup %Cost markup
Percent added on top of plate cost. 200% markup means menu price = 3× plate cost.

Worked examples

Real numbers through the same formula this tool uses.

  1. 1
    Restaurant scenarioExample 1

    $10 plate at 30% food cost

    Menu price = 10 ÷ 0.30 = $33.33. Gross profit = $23.33 (70% of menu price).

  2. 2
    Restaurant scenarioExample 2

    $10 plate at 200% markup

    Menu price = 10 × 3 = $30. Food cost % = 33.3%. Gross profit = $20.

How to use this calculator

Four steps from plate cost to menu price.

  1. Enter plate cost

    Use total ingredient cost per plate from the Plate Cost Calculator or your latest cost sheet.

  2. Choose pricing method

    Switch between Food cost % (target margin on menu price) or Markup % (margin on cost).

  3. Set your target

    Enter desired food cost % (e.g. 30) or markup % (e.g. 200). Review recommended selling price and gross profit.

  4. Add optional adjustments

    Model tax, service charge, and discount to see customer total and revenue summary.

Food cost % vs markup

Two ways to set menu price — they are not interchangeable.

  • Food cost % pricing

    Menu Price = Plate Cost ÷ (Food Cost % ÷ 100). A 30% target on $10 plate cost → $33.33. Food cost % is always relative to selling price, not cost.

  • Markup % pricing

    Menu Price = Plate Cost × (1 + Markup % ÷ 100). 200% markup on $10 → $30. Markup is relative to cost — 200% markup equals roughly 33% food cost.

  • 30% food cost ≠ 30% markup

    30% food cost means ingredients are 30% of menu price. 30% markup only adds $3 to a $10 plate ($13 total) — about 77% food cost. Always know which method you are using.

  • Check resulting food cost %

    After pricing, verify actual food cost % = Plate Cost ÷ Menu Price. Use the Food Cost Percentage Calculator for period-level checks.

Pricing strategies

Practical approaches for setting and maintaining menu prices.

  • Cost the plate first

    Accurate plate cost from Recipe → Portion → Plate calculators is the foundation. Pricing on guessed costs erodes margin silently.

  • Pick a target band by concept

    Fine dining may run higher food cost % with premium pricing power. Fast casual often targets lower food cost with higher volume.

  • Round for the menu

    The calculator gives a precise number — round to menu-friendly price points ($24.95 vs $24.37) while staying near your target food cost %.

  • Re-price when costs move

    Supplier invoice changes, portion drift, and seasonal ingredients all shift plate cost. Review top sellers every quarter.

Common pricing mistakes

Errors that compress margin or mislead menu engineering.

  • Confusing markup with food cost %

    Saying “we mark up 30%” when you mean “30% food cost” can underprice dishes by thousands of dollars annually.

  • Pricing on protein cost only

    Menu price should cover the full plated meal — sides, sauce, garnish, and packaging belong in plate cost before pricing.

  • Ignoring discounts and comps

    Happy hour, loyalty, and comps lower effective selling price. Model discounts when planning margin.

  • Set-and-forget menu prices

    A price set two years ago may no longer hit target food cost %. Re-cost top sellers when commodity prices spike.

References & related tools

Food cost cluster and upcoming calculators.

  • Plate Cost Calculator

    Sum main portion plus sides, sauce, garnish, and packaging for total plate cost.

  • Portion Cost Calculator

    Divide recipe batch cost by servings for cost per portion.

  • Recipe Cost Calculator

    Build ingredient cost for each component before plating.

  • Food Cost Percentage Calculator

    Verify period-level food cost % after menu prices are set.

  • Prime Cost Calculator (coming soon)

    Combine food and labor cost for full dish economics beyond ingredients.

  • Gross Profit Calculator (coming soon)

    Analyze gross profit dollars and margin across menu items.

Frequently asked questions

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