Food Cost Percentage Calculator

Calculate food cost percentage and target selling price

Your result will appear here.

About the Food Cost Percentage Calculator

Food cost percentage compares the cost of ingredients or food sold with the revenue generated from those sales. Restaurants use it to monitor menu pricing, purchasing and portion control.

The useful cost basis depends on the analysis. A recipe-level food cost uses ingredient cost for one menu item, while a period food-cost percentage may adjust beginning inventory, purchases and ending inventory to determine actual food used.

How to Use the Food Cost Percentage Calculator

  1. Enter food cost or cost of food sold.
  2. Enter corresponding food sales revenue.
  3. Calculate the percentage.
  4. Compare the result with menu pricing, waste and category mix rather than treating one target as universal.

How the Calculation Works

Food cost percentage = food cost ÷ food sales ×100.

At the period level, food cost used can be calculated from beginning inventory + purchases − ending inventory, adjusted for transfers or other accounting items when relevant.

Worked example

Food Cost Percentage Calculator Worked Example

$30,000 food cost on $100,000 food sales

Food cost percentage = $30,000÷$100,000×100 = 30%.

Result guide

Understanding Your Food Cost Percentage Calculator Result

A 30% food cost means thirty cents of each sales dollar went to the defined food cost before labor, rent and other operating expenses. Menu mix can move the overall percentage even when ingredient costs for individual dishes do not change. Selling more high-cost entrées and fewer high-margin drinks can raise the blended food-cost percentage without any purchasing problem.

Before you rely on the answer

Assumptions and Limitations

  • Cost and sales cover the same period or menu item.
  • Inventory adjustments are included consistently.
  • Sales are measured net or gross under a consistent accounting basis.

Practical tip

Using This Result in Practice

Track food cost alongside contribution margin, not in isolation. A higher-cost dish can still be attractive if its selling price generates more contribution dollars.

Related calculations

Useful Calculations to Continue With

If you need ingredient cost for a specific recipe first, use the Recipe Cost Calculator.

If you want to see profit after broader costs relative to revenue, use the Profit Margin Calculator.

Common questions

Food Cost Percentage Calculator FAQ

How is food cost percentage calculated?

Divide food cost by related food sales and multiply by 100.

Is a lower food cost percentage always better?

Not necessarily. Menu price, quality, demand and contribution dollars also matter.

Can inventory affect period food cost?

Yes. Beginning inventory, purchases and ending inventory determine food used during the period.