Recipe Cost Calculator
Calculate your recipe cost, cost per serving, and food cost percentage. Essential for restaurants, bakeries, and home cooks who want to budget meals or price menu items profitably.
ℹ️ Recipe Costing Tips
- • Include "invisible" ingredients: oil, salt, spices, garnishes
- • Update prices quarterly to catch price changes
- • Buy staples in bulk for better per-unit costs
- • Track waste — the usable portion is what matters
Real-World Recipe Costing Examples
See how professional chefs and home cooks use recipe costing to make smarter decisions about pricing, portioning, and menu development.
Restaurant Entrée: Grilled Salmon Plate
A casual dining restaurant needs to price their signature salmon dish. They target 32% food cost to maintain profitability while staying competitive.
Ingredient Costs:
- • 6 oz Atlantic salmon fillet: $4.50
- • Herb butter (1 oz): $0.35
- • Roasted vegetables (6 oz): $1.20
- • Rice pilaf (4 oz): $0.45
- • Lemon wedge and herbs: $0.25
- • Cooking oil and seasonings: $0.15
Results:
- • Total food cost: $6.90
- • Menu price at 32% food cost: $6.90 ÷ 0.32 = $21.56 → $21.95
- • Gross profit per plate: $15.05
Pro tip: Compare to your local market—if competitors charge $24-26 for similar dishes, you can price at $23.95 and enjoy a lower 29% food cost while still being competitive.
Bakery Item: Artisan Sourdough Loaf
A small bakery wants to cost their signature sourdough loaf. Bakeries typically target 20-25% food cost since labor is their primary expense.
Ingredient Costs (per loaf):
- • Bread flour (450g): $0.54
- • Whole wheat flour (50g): $0.08
- • Salt (10g): $0.02
- • Sourdough starter (100g): $0.12
- • Water: $0.01
- • Energy (oven cost): $0.15
Results:
- • Total cost per loaf: $0.92
- • Price at 22% food cost: $0.92 ÷ 0.22 = $4.18 → $4.50
- • Actual food cost at $4.50: 20.4%
Pro tip: Artisan bakeries can command $6-8 per loaf in premium markets. At $6.50, your food cost drops to 14%, but labor may be 40%+ of revenue. Know your full cost structure.
Home Budget: Weekly Meal Prep
A family of four wants to budget their weekly dinners. They batch-cook a large pot of chili that provides 8 servings (2 dinners for the family).
Ingredient Costs:
- • Ground beef (2 lbs): $9.98
- • Canned tomatoes (2 cans): $3.50
- • Kidney beans (2 cans): $2.80
- • Onion and peppers: $2.50
- • Spices and seasonings: $0.75
- • Sour cream and cheese (for topping): $3.00
Results:
- • Total recipe cost: $22.53
- • Cost per serving: $22.53 ÷ 8 = $2.82
- • Family dinner cost (4 servings): $11.27
- • Compared to takeout: Similar chili bowls cost $12-15 each
Pro tip: Making 2x this recipe costs only $40 but feeds the family 4 dinners. Freeze half for even greater convenience. Cost per meal drops if you buy ingredients on sale.
Catering Event: Corporate Lunch (50 people)
A caterer is bidding on a corporate lunch. They need to calculate food cost to determine pricing that covers labor, equipment rental, and profit.
Per-Person Food Costs:
- • Chicken breast (6 oz): $2.25
- • Mixed greens salad: $1.40
- • Roasted potatoes: $0.85
- • Dinner roll and butter: $0.45
- • Brownie dessert: $0.90
- • Beverages (water, coffee): $0.65
Results:
- • Food cost per person: $6.50
- • Total food cost (50 people): $325.00
- • Price at 28% food cost: $6.50 ÷ 0.28 = $23.21/person
- • Total bid (rounded): $1,175 ($23.50/person)
Pro tip: Add 10% buffer for food cost variance and waste. Corporate catering typically runs 25-30% food cost. Don't forget to factor in disposables (~$1.50/person) and transport costs.
Food Truck: Signature Tacos
A food truck operator needs to price their taco plate (3 tacos). Food trucks target 28-32% food cost with lower overhead than restaurants but higher ingredient cost per item.
Ingredient Costs (3-taco plate):
- • Carne asada (5 oz): $2.75
- • Corn tortillas (3): $0.30
- • Onion, cilantro, lime: $0.35
- • Salsa and crema: $0.40
- • Rice and beans side: $0.55
- • Container and napkins: $0.35
Results:
- • Total cost: $4.70
- • Price at 30% food cost: $4.70 ÷ 0.30 = $15.67 → $16.00
- • Actual food cost at $16: 29.4%
- • Daily profit (50 plates): $565 gross
Pro tip: Volume is everything for food trucks. At 75 plates/day at the same margins, daily gross jumps to $847.50. Track your bestsellers and optimize prep for speed.
Batch Cooking: Freezer Meal Prep
A busy professional batch-cooks 20 freezer meals on Sunday to save time and money during the work week. This is chicken stir-fry with rice.
Bulk Ingredient Costs (20 portions):
- • Chicken thighs (5 lbs): $14.95
- • Jasmine rice (3 lbs): $4.50
- • Frozen stir-fry vegetables (4 bags): $10.00
- • Soy sauce, sesame oil, garlic: $2.50
- • Meal prep containers (20): $8.00
Results:
- • Total batch cost: $39.95
- • Cost per meal: $39.95 ÷ 20 = $2.00
- • Weekly lunch savings: ~$60 vs restaurant lunches
- • Monthly savings: ~$240
Pro tip: Reusable glass containers cost more upfront ($30-50 for 20) but last years. Amortized over 100 uses, they add only $0.04/meal vs disposables at $0.40/meal.
Understanding Food Cost Percentage
Food cost percentage is the most important metric for food businesses. It tells you how much of your revenue goes to ingredients—and ultimately determines whether your restaurant, bakery, or food truck can be profitable.
The Formula:
Food Cost % = (Total Ingredient Cost ÷ Menu Price) × 100
Industry Food Cost Targets by Business Type
| Business Type | Target Food Cost % | Labor Cost % | Prime Cost Target | Key Considerations |
|---|---|---|---|---|
| Fine Dining | 28-32% | 35-40% | 63-72% | High service labor offsets premium ingredients |
| Casual Dining | 30-35% | 28-32% | 58-67% | Standard target for most restaurants |
| Fast Casual | 28-32% | 25-28% | 53-60% | Counter service reduces labor needs |
| Quick Service (QSR) | 25-30% | 25-28% | 50-58% | High volume compensates for tight margins |
| Bakery/Cafe | 20-25% | 35-45% | 55-70% | Low ingredient cost, high skilled labor |
| Bar (Drinks) | 18-24% | 20-25% | 38-49% | High-margin beverages offset low food sales |
| Food Truck | 28-32% | 20-25% | 48-57% | No rent, but limited volume capacity |
| Catering | 25-30% | 30-35% | 55-65% | Event-based, factor in transport and setup |
| Ghost Kitchen | 30-35% | 22-28% | 52-63% | Delivery fees eat into margin, lower labor |
| Pizza Shop | 28-35% | 25-30% | 53-65% | Flour-based items have excellent margins |
Menu Pricing from Food Cost
To calculate menu price from food cost:
Menu Price = Ingredient Cost ÷ Target Food Cost %
Example: If a dish costs $4.50 in ingredients and you target 30% food cost:
$4.50 ÷ 0.30 = $15.00 menu price
Common Ingredient Cost Reference (US Average Prices)
Use these benchmark prices to estimate recipe costs. Actual prices vary by location, supplier, and season. Update these figures quarterly for accurate costing.
| Ingredient | Retail Price | Foodservice Price | Cost per Oz | Typical Recipe Use |
|---|---|---|---|---|
| Chicken Breast (boneless) | $4.99/lb | $2.80/lb | $0.31/oz | 6 oz portion = $1.86 |
| Ground Beef (80/20) | $5.49/lb | $3.50/lb | $0.34/oz | 8 oz burger = $2.72 |
| Atlantic Salmon | $12.99/lb | $9.50/lb | $0.81/oz | 6 oz fillet = $4.86 |
| Pasta (dried) | $1.99/lb | $0.85/lb | $0.12/oz | 4 oz portion = $0.48 |
| Rice (long grain) | $1.29/lb | $0.45/lb | $0.08/oz | 4 oz portion = $0.32 |
| Heavy Cream | $5.99/qt | $3.20/qt | $0.19/oz | 2 oz = $0.38 |
| Butter (unsalted) | $5.49/lb | $3.25/lb | $0.34/oz | 1 oz = $0.34 |
| All-Purpose Flour | $4.29/5 lb | $0.60/lb | $0.05/oz | 8 oz = $0.40 |
| Eggs (large) | $3.99/dozen | $2.40/dozen | $0.33/egg | 2 eggs = $0.66 |
| Olive Oil (extra virgin) | $8.99/500ml | $5.50/500ml | $0.53/oz | 1 oz = $0.53 |
Costing Tips for Accuracy
Don't Forget Hidden Costs
- Cooking oils: Track oil used for frying, sautéing, and finishing
- Seasonings: Salt, pepper, herbs, and spices add up
- Garnishes: That parsley sprig and lemon wedge have costs
- Bread and butter: If included, add to the dish cost
- Waste: Factor in trim waste for produce and proteins (typically 10-30%)
Comprehensive Waste Factors by Ingredient
| Ingredient | Typical Waste % | Yield Factor | What's Waste | Recovery Options |
|---|---|---|---|---|
| Onions | 10% | 0.90 | Skin and ends | Skins for stock |
| Garlic | 12% | 0.88 | Skin and root | Skins for stock |
| Carrots | 15% | 0.85 | Tops and peels | Peels for stock, tops for garnish |
| Lettuce (head) | 20-25% | 0.75-0.80 | Core and outer leaves | Outer leaves for staff meals |
| Bell Peppers | 18% | 0.82 | Core, seeds, stem | None typical |
| Broccoli | 35% | 0.65 | Thick stem base | Stems for soup, slaw |
| Whole chicken | 35-40% | 0.60-0.65 | Bones and trim | Stock and demi-glace |
| Beef tenderloin | 15-20% | 0.80-0.85 | Silver skin, fat, chain | Chain for staff meals, fat for rendering |
| Pork loin | 10-15% | 0.85-0.90 | Fat cap, silver skin | Fat for rendering, lard |
| Fish fillet | 5-10% | 0.90-0.95 | Pin bones, trim | Trim for ceviche, tartare |
| Whole fish | 50-60% | 0.40-0.50 | Head, bones, skin | Stock and fumet |
| Shrimp (head-on) | 40-50% | 0.50-0.60 | Heads, shells | Shrimp stock, bisque |
Menu Pricing Quick Reference
Use this table to quickly calculate menu prices based on your food cost and target percentage.
| Food Cost | 25% Target | 28% Target | 30% Target | 33% Target | 35% Target |
|---|---|---|---|---|---|
| $2.00 | $8.00 | $7.14 | $6.67 | $6.06 | $5.71 |
| $3.00 | $12.00 | $10.71 | $10.00 | $9.09 | $8.57 |
| $4.00 | $16.00 | $14.29 | $13.33 | $12.12 | $11.43 |
| $5.00 | $20.00 | $17.86 | $16.67 | $15.15 | $14.29 |
| $6.00 | $24.00 | $21.43 | $20.00 | $18.18 | $17.14 |
| $7.00 | $28.00 | $25.00 | $23.33 | $21.21 | $20.00 |
| $8.00 | $32.00 | $28.57 | $26.67 | $24.24 | $22.86 |
| $10.00 | $40.00 | $35.71 | $33.33 | $30.30 | $28.57 |
Strategies to Reduce Food Cost
- Cross-utilize ingredients: Use chicken bones for stock, vegetable trim for soups
- Seasonal menus: Buy ingredients when they're abundant and cheap
- Portion control: Consistent portions prevent over-serving
- Inventory management: FIFO (first in, first out) reduces spoilage
- Vendor negotiation: Get quotes from multiple suppliers
- Menu engineering: Promote high-margin dishes
- Batch cooking: Large batches reduce per-portion labor and waste
- Proper storage: Correct storage extends ingredient life and prevents loss
Break-Even Analysis for Menu Items
Understanding how many portions you need to sell to cover your costs helps with menu decisions and promotion strategies.
| Menu Price | Food Cost | Gross Profit | FC % | Units for $100 Profit | Units for $500 Profit |
|---|---|---|---|---|---|
| $12.00 | $3.60 | $8.40 | 30% | 12 units | 60 units |
| $16.00 | $4.80 | $11.20 | 30% | 9 units | 45 units |
| $22.00 | $6.60 | $15.40 | 30% | 7 units | 33 units |
| $28.00 | $8.40 | $19.60 | 30% | 6 units | 26 units |
| $35.00 | $10.50 | $24.50 | 30% | 5 units | 21 units |
Frequently Asked Questions
What food cost percentage should I aim for?
Standard targets: Fine dining: 28-32%, Casual restaurants: 30-35%, Fast casual/QSR: 25-30%, Bakeries: 20-25%, Bars (drinks): 18-24%. These are industry averages. Your ideal target depends on your labor costs, rent, and desired profit margin. If your labor is high (full-service), you need lower food cost. If it's low (fast casual), you can afford higher food cost.
How do I calculate cost per serving?
Total recipe cost ÷ number of servings = cost per serving. Example: A soup recipe costs $24.50 and makes 10 portions. Cost per serving = $24.50 ÷ 10 = $2.45. For menu pricing, divide cost per serving by your target food cost percentage. At 30% food cost, that $2.45 soup should be priced around $8.17 (rounded to $8.25 or $8.50).
Should I include seasonings and pantry staples in my cost?
Yes, especially for food businesses. Those 'invisible' costs add up. A conservative approach: add 3-5% to your calculated ingredient cost to cover salt, pepper, oil for cooking, herbs, and other staples. For precise tracking, calculate the cost per teaspoon/tablespoon of seasonings you use frequently and add them explicitly.
How do I handle bulk ingredient costs?
Break down bulk purchases to cost per unit (gram, ounce, each). If you buy a 25-lb bag of flour for $15, that's $0.60/lb or $0.0375/oz. Then multiply by the amount your recipe uses. Our calculator handles this automatically when you enter the package size and price.
What's the difference between food cost and plate cost?
Food cost is JUST ingredients. Plate cost includes labor, overhead, packaging, and garnishes. Example: A dish with $3.50 food cost might have $1.00 labor (prep time), $0.50 packaging, $0.25 garnish = $5.25 plate cost. Restaurants typically track food cost %, but understanding full plate cost helps with pricing decisions.
How can I lower my food cost percentage?
Strategies: 1) Reduce portion sizes slightly (customers rarely notice 5-10% reduction). 2) Use less expensive cuts/ingredients in preparations where they won't be noticed. 3) Cross-utilize ingredients across menu items to reduce waste. 4) Buy seasonal ingredients when cheaper. 5) Negotiate with suppliers or change vendors. 6) Reduce waste through better inventory management. 7) Raise menu prices if the market allows.
How often should I recalculate my food costs?
At minimum, review food costs monthly and whenever suppliers raise prices. High-inflation periods may require weekly reviews. Track your top 10 ingredients closely—they typically represent 80% of your food cost. Set up price alerts with suppliers and recalculate affected recipes immediately when key ingredient prices change more than 5%.
What's the edible portion cost vs as-purchased cost?
As-purchased (AP) cost is what you pay at the supplier. Edible portion (EP) cost accounts for waste and trim. For example, if you buy whole salmon at $12/lb but 40% is bones/skin/waste, your EP cost is $12 ÷ 0.60 = $20/lb of usable fish. Always use EP cost in recipe costing for accuracy.
How do I account for recipe yield loss?
Cooking causes shrinkage—meat loses 25-30% weight, vegetables lose 10-20% through cooking. Track actual cooked portions vs raw weights. If your 8 oz raw burger cooks to 6 oz served, cost the 8 oz raw weight. For sauces that reduce, measure before and after to find your yield percentage.
Should I cost recipes differently for takeout vs dine-in?
Yes. Takeout adds packaging costs ($0.20-$1.50 per container), utensils, napkins, and condiment packets. Create separate costings for dine-in and takeout. Many restaurants price takeout slightly higher or use lower food cost targets for delivery orders to account for these additional expenses plus third-party delivery fees.
How do I price specials and limited-time offers?
Specials can run at higher food costs (35-40%) if they drive traffic or move excess inventory. Calculate your break-even: if a special brings in 50 extra covers at $18 each with 40% food cost, you still make $540 gross profit. Use specials strategically to test new menu items before committing to permanent addition.
What's the prime cost and why does it matter?
Prime cost = food cost + labor cost. It's the most important metric for restaurant profitability. Target prime cost of 55-65% of revenue. If your food cost is 30% and labor is 30%, prime cost is 60%—leaving 40% for rent, utilities, profit. If prime cost exceeds 70%, profitability becomes nearly impossible.
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Content referenced from National Restaurant Association, USDA, FDA Food Safety, Culinary Institute of America, and Toast Restaurant Management.