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Free Food Cost Calculator
Find out exactly how much each dish costs to make. See your profit margin instantly.
Used by food trucks & restaurants worldwide
Add each ingredient with its quantity and cost per unit.
How to Calculate Food Cost Percentage
Food cost percentage tells you what portion of your selling price goes to ingredients. It's the single most important number for menu profitability.
Food Cost % = (Ingredient Cost ÷ Selling Price) × 100
For example, if your burger costs $4.82 in ingredients and you sell it for $14.00, your food cost percentage is 34.4%. That means for every dollar a customer pays, about 34 cents goes to ingredients.
The industry target is 28–35%, depending on your restaurant type. Below 30% is considered healthy. Above 35% and you're likely losing money on that dish — especially after labor, rent, and overhead.
What's a Good Food Cost Percentage?
Target food cost varies by restaurant type. Here are industry benchmarks:
| Business Type | Target Food Cost % |
|---|---|
| Food Truck | 28–32% |
| Fast Casual | 28–35% |
| Casual Dining | 28–35% |
| Fine Dining | 30–40% |
| Ghost Kitchen | 25–32% |
| Pizza | 20–28% |
| Coffee / Bakery | 20–30% |
Frequently Asked Questions
What is food cost percentage?
Food cost percentage is the ratio of ingredient costs to selling price, expressed as a percentage. For example, if a dish costs $4 in ingredients and sells for $12, the food cost percentage is 33.3%. Most restaurants aim for 28–35% food cost depending on their type and market.
How do I lower my food cost?
Start by identifying your highest-cost ingredients and look for substitutions that don’t affect taste — like switching cooking oils or using canned tomatoes in sauces. Negotiate bulk pricing with suppliers, reduce portion sizes where industry standards support it, and regularly audit ingredient prices. FoodCostly automates this process and uses AI to find savings you might miss.
What’s the difference between food cost and COGS?
Food cost refers specifically to the raw ingredient cost of menu items. Cost of Goods Sold (COGS) is broader and includes all costs directly tied to producing what you sell — food, packaging, disposables, and sometimes labor directly tied to food preparation. Food cost is a subset of COGS.
How often should I calculate food cost?
At minimum, calculate food cost monthly. Ideally, recalculate whenever ingredient prices change significantly. Ingredient prices can fluctuate weekly, especially for produce and proteins. Tools like FoodCostly track price changes automatically and alert you when a dish’s food cost crosses your target threshold.
Stop guessing. Start knowing.
Explore our guides to learn more about reducing food cost, optimizing your menu, and improving your margins.
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