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Calculate a suggested selling price from the cost of one portion and a target food-cost percentage. The result is the price that makes the entered cost equal to the selected share of the selling price. It is a starting point for pricing decisions, not a complete restaurant pricing model.
Menu price calculator
Pricing equation
Let C be the entered cost per portion and T the target food-cost percentage. The calculator uses selling price = C ÷ (T ÷ 100). It also reports gross profit per portion = selling price − C. The target must be greater than 0% and less than 100%.
This is an algebraic rearrangement of food-cost percentage = cost ÷ selling price × 100. A lower target percentage produces a higher suggested price for the same cost; a higher target percentage produces a lower suggested price.
Verified numerical example
Suppose the entered portion cost is 3.60 and the target food-cost percentage is 30%. Suggested selling price = 3.60 ÷ 0.30 = 12.00. Gross profit before other expenses = 12.00 − 3.60 = 8.40 per portion. The food-cost ratio is 3.60 ÷ 12.00 = 30%.
If the target is changed to 25%, the same cost gives 3.60 ÷ 0.25 = 14.40. The calculator does not round to a market-friendly menu price automatically; choose a price point and recalculate to check the resulting percentage.
How to use the calculator
- Enter the cost of ingredients or food for one saleable portion.
- Enter the target food-cost percentage as a number, such as 30 for 30%.
- Calculate the suggested price and gross profit.
- If you round the price for your menu, use the Food Cost Percentage Calculator to verify the actual resulting ratio.
Business assumptions and limitations
The output is only as complete as the cost input. If it includes ingredients but excludes packaging, labor, delivery commissions, rent, utilities, waste, payment fees or taxes, the suggested price does not cover those items by itself. Consider separate contribution-margin and prime-cost analysis before finalizing a menu price.
A target percentage is a business choice, not a universal benchmark. The appropriate target depends on product type, portion size, customer demand, competition, location, sales mix and operating structure. This calculator does not forecast demand or optimize prices for profit.
Frequently asked questions
Does the calculator include tax?
No. It calculates a pre-tax price from the entered cost and target percentage. Add applicable taxes using the correct local tax rules.
Can the target be 100%?
No. At 100%, the formula would leave no gross profit; the tool requires a target strictly between 0 and 100%.
Should I use the suggested price exactly?
Not necessarily. Consider market positioning and all operating costs, then round the price and verify the resulting food-cost percentage.
Related tools
To verify the resulting ratio, use the Food Cost Percentage Calculator. For a broader profit view, use the Recipe Profit Margin Calculator.