Food cost calculator
Cost a recipe, price the dish for your target food cost, and check your prime cost.
Prices, yields, targets and labor are example inputs, not typical figures. "Usable after trim" is the share of what you buy that reaches the plate (100 = no loss).
What the numbers mean
Food cost percentage is the share of the menu price that goes to the food on the plate. Prime cost adds labor to the food: those are the two largest costs an operator can steer from week to week. A recipe costed with yield (what is left after trimming) tells you what a plate really costs, and a menu price set from it protects the margin you planned for.
The formulas
True ingredient cost = purchase cost of the amount used ÷ usable share (yield). Plate cost = sum of the true costs ÷ portions. Menu price = plate cost ÷ target food cost percentage. Food cost % = plate cost ÷ menu price. Gross profit = price − plate cost. Contribution margin = price − plate cost − labor per dish − other variable costs. For a period, cost of goods sold = opening inventory + purchases − closing inventory; prime cost = cost of goods sold + labor.
Worked example
The form costs a chicken, rice and vegetable plate for four. Chicken breast is $9.60 as purchased with 75% usable, so it costs $12.80; the vegetables are $2.20 at 85% usable, $2.59. With rice at $0.90 and sauce at $1.30, the recipe costs $17.59 and one portion $4.40. A 30% target gives a menu price of $14.66. At an actual price of $18 the food cost is 24.4%. After $3.50 of labor and $0.50 of other costs the dish at $14.66 contributes $6.26, and its prime cost is $7.90, 53.9% of the price.
Common mistakes
The most expensive mistake is costing from the purchase price without yield: in the example it understates the recipe by $3.59 on $17.59. The next is to price from a target without checking the menu mix: a dish with a low food cost percentage and a small price may earn fewer dollars per plate than a dish with a higher percentage and a higher price, so look at gross profit as well. A third is to use a food cost from a recipe card that is out of date, since purchase prices change. Finally, labor must include payroll taxes and benefits, not just wages; the NRA's labor figures include benefits.
Limits of this method
Food cost percentage alone does not make a restaurant profitable. In the National Restaurant Association's 2024 data, median food and non-alcoholic beverage cost was 32.0% of sales at full-service and 32.4% at limited-service restaurants, and median labor was 36.5% and 31.7%, but the NRA says those medians are not standards or goals for individual restaurants. The restaurants that made a profit had lower labor shares than the ones that lost money, so prime cost is more telling than food cost alone. The calculator also treats each dish separately and does not model waste, comps, theft, portion drift, delivery commissions or alcohol, all of which push the actual cost above the theoretical one.
How do I calculate food cost percentage?
Food cost percentage = cost of the food ÷ sales price × 100. For one dish, divide the plate cost by the menu price: a dish that costs $4.40 in ingredients and sells for $18.00 has a food cost of 24.4%. For a whole period, use cost of goods sold = opening inventory + purchases − closing inventory, and divide by sales: $32,000 on $100,000 of sales is 32.0%. The amounts in these examples are illustrative, not typical.
How do I price a menu item from its cost?
Divide the plate cost by the food cost percentage you are aiming for. At $4.40 per plate and a 30% target the price is $4.40 ÷ 0.30 = $14.66. That is 3.33 times the cost. The target is yours to choose: it depends on your concept, your labor, your rent and what guests will pay. Round to a price that fits your menu, then check the actual food cost percentage at that price in the same calculator.
What is a good food cost percentage for a restaurant?
There is no single right figure, and an operator's own numbers matter most. For orientation, the National Restaurant Association reports that in 2024 the median food and non-alcoholic beverage cost was 32.0% of sales among full-service restaurants and 32.4% among limited-service ones. The association states that these figures are not intended to be standards or goals for individual restaurants. A steakhouse and a pizza place have different food costs, so compare with your own history and similar concepts.
What is prime cost?
Prime cost is the two biggest controllable costs added together: cost of goods sold and labor. The NRA says that managing the prime costs of food and labor is key to a restaurant's ability to turn a profit. In its 2024 data, median labor cost (salaries, wages and benefits) was 36.5% of sales at full-service restaurants and 31.7% at limited-service ones, and the restaurants that made a pre-tax profit had lower labor shares (34.2% and 30.0%) than those that lost money (42.9% and 34.1%). In the period example, prime cost is $62,000, 62.0% of sales, which leaves 38.0% for rent, utilities, marketing, insurance and profit.
What is yield percentage and why does it matter?
Yield is the share of a purchased item that ends up on the plate after trimming, peeling, bones or cooking loss. If you buy $9.60 of chicken breast and only 75% is usable, the usable chicken really cost $12.80, not $9.60. The calculator divides every ingredient's purchase cost by its yield. In the example the true recipe cost is $17.59, against $14.00 if nothing was lost to trim, which is $3.59 the menu price would otherwise fail to cover. Test your own yields by weighing before and after prep.
What is the difference between gross profit and contribution margin?
Gross profit per dish is the price minus the food cost. Contribution margin goes one step further and subtracts the other costs that rise with each dish, here the labor and other variable costs per plate that you enter. In the example, the $14.66 dish has a gross profit of $10.26 and, after $3.50 of labor and $0.50 of packaging, a contribution of $6.26. Contribution margin is the money that remains to pay fixed costs such as rent and to leave a profit.
Should the recipe cost include oil, spices and garnish?
Yes, if they make a visible difference. Many kitchens add a small percentage to the recipe total for items that are too small to measure, such as salt, oil, parsley and a splash of sauce. Enter that as a separate ingredient line, for example 'misc' at its purchase cost, so that the plate cost does not look better than it is.
Educational calculation, not accounting or business advice; your own costs decide. Sources, checked October 27, 2026: National Restaurant Association, Restaurant operators kept food cost ratios in check in 2024 (September 10, 2025) and Elevated labor costs had a significant impact on restaurant profitability in 2024 (October 8, 2025). Related: the margin calculator (markup and margin), break-even calculator, recipe scaler, unit price calculator and financial ratios calculator. How we check our calculators.