Menu price from food cost %.

Worked example

A portion costs $3.60 to make and you want a 30% food cost, so the menu price is $3.60 / 0.30 = $12.00. Gross profit is $8.40 a portion, a 70% gross margin, and the price is 3.33 times cost, a markup of 233.33%. At a current price of $11.00 the food cost is 32.73% and the gross profit $7.40, so the price would need to rise by $1.00 to reach the target.

How it works

Food cost % = cost per portion / menu price. Turned around, menu price = cost per portion / target food cost %. The multiple (price / cost) is the reciprocal of the food cost percentage, and markup on cost is that multiple minus one.

Food cost percentage is not the whole picture: it ignores labour, rent and fees, and a low-priced item can meet a target percentage while earning little per sale. Target percentages differ by menu and concept, and this tool does not assume one. Use the plate cost calculator to get an accurate cost per portion first.

Sources and basis (checked 2026-10-08): Arithmetic on your inputs only. The target food cost percentage is your own choice; no industry benchmark is assumed.

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FAQ

How do I calculate menu price from food cost percentage?

Divide the cost of one portion by the target food cost percentage written as a decimal. A $3.60 portion at 30% gives $12.00.

What is the difference between markup and margin?

Markup is the price above cost as a share of cost. Margin is the profit as a share of the price. A 30% food cost is a 70% gross margin and a markup of 233.33% on cost.

What target food cost should I use?

That is your decision and it depends on your menu, labour and fees. The calculator shows what each target means for price so you can compare.

Does the cost per portion include packaging?

Include everything that goes with the portion, including takeout packaging and sauces, or the real food cost will be higher than the result shows.