Menu price calculator

What is the menu price formula?

Menu price = food cost per plate ÷ target food-cost percentage. At a 30% target, a dish whose ingredients cost $3.60 sells for $3.60 ÷ 0.30 = $12.00. The food-cost percentage is the share of the price spent on ingredients; the rest pays for labour, rent, other costs and profit.

Run the formula backwards to check a price you already charge: food-cost % = food cost ÷ menu price × 100. A $15.00 dish with $5.25 of ingredients runs at 35%.

• Food cost per plate: what the ingredients in one portion cost you, including sauce, garnish, oil and sides served with it.
• Target food-cost percentage: the share of the menu price you plan to spend on ingredients.
• Gross profit per plate: the menu price before tax minus the food cost. It has to cover everything else.

How do I work out the food cost of a dish?

List every ingredient in one portion with the quantity you use, then multiply each by what you pay per unit, using the price per usable unit after trimming. Add sauces, garnish, oil and any side served with the dish. The total is your food cost per plate.

1. Write down the recipe for one portion, with weights or counts.
2. Price each ingredient per unit (per kg, lb, litre or piece) from your latest supplier invoices.
3. Allow for yield: if a case of salmon gives you 80% usable fillet, divide its price per kg by 0.8.
4. Multiply each quantity by its unit price and add them up.
5. Recost the dish whenever a supplier price changes, and update the menu price if you need to.

What food-cost percentage should a restaurant aim for?

There is no single right number. Industry guides commonly cite roughly 28–35% for restaurants, with drinks often lower and premium proteins higher. The right target for you depends on your labour, rent and other costs, so use your own accounts rather than a rule of thumb.

Most menus mix percentages: a low-cost dish such as pasta can carry a high-cost one such as steak. What matters is the food cost across everything you actually sell, so price each dish on its own numbers, then check the overall result against your accounts.

What do menu prices look like with this formula?

Four worked examples at different targets show how the formula and rounding fit together. Rounding up to a menu-friendly ending such as .49 or .99 slightly lowers the real food-cost percentage, which works in your favour.

Should menu prices include tax?

It depends on where you trade. In the US, menu prices usually exclude sales tax, which is added to the bill. In the UK, the EU, Australia and many other countries, prices shown to consumers must include VAT or GST. Work out the price before tax first, then add tax if your prices must include it.

With tax included, the calculator rounds the price guests see, then divides it by (1 + tax rate) to find the price before tax. The food-cost percentage is calculated on that figure, because the tax is not your revenue.

Is food cost the only thing to consider when pricing a menu?

No. Food cost sets a floor, but the final price also depends on labour (dishes that take longer to prepare cost more), what nearby competitors charge, what guests expect to pay and how well the dish sells. Review prices whenever supplier costs change, so the menu never falls behind.

With a digital menu a price change takes seconds: edit, save, and every table's QR code shows the new price. Create your free menu.