Food Cost & Planning

Recipe Cost and Margin Calculator

For food businesses: find your food cost percentage, profit margin, and markup, and set menu prices.

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Currently active across all 60 calculators: US Customary (cups, tbsp, oz, °F, in)

Cost to make one portion ($)

Menu price ($)

242.9%Markup on cost

$8.50Gross Profit

70.8%Gross Margin

29.2%Food Cost %

To hit a 30% food cost, price this at $11.67. For 25%, price it at $14.00.

Professional food businesses aim for a food cost percentage between 28% and 35% (corresponding to a 65% to 72% gross margin) to cover labor, utilities, rent, and packaging.

How to use this calculator

1Enter what it costs you to make one portion (ingredients plus packaging).
2Enter the price you plan to charge.
3Read your profit, margin, markup, and food cost percentage, plus suggested prices for 25% and 30% food cost.

Tip: Margin and markup aren't the same: a 100% markup is a 50% margin.

How it's calculated

Gross Margin % = ((Selling Price - Total Cost) ÷ Selling Price) × 100; Markup % = (Profit ÷ Cost) × 100

We do the math at full precision and only round the final answer, so the numbers you see are as close as kitchen measurements allow. The assumptions and limits are listed alongside.

Worked example

Scenario: A dessert costs $3.20 in ingredients and packaging. Target 70% gross margin.

InputsCost: $3.20; Target Margin: 70%

CalculationSelling Price = $3.20 ÷ (1 - 0.70) = $10.67. Profit = $7.47. Markup = 233%.

ResultSuggested Price: $10.75 (Food cost: 29.8%, Margin: 70.2%)

Common questions

What is the difference between Margin and Markup?

Margin is the percentage of the selling price that is profit. Markup is the percentage added on top of the cost. A 100% markup equals a 50% gross margin.