How the calculation works
Use the cost of the entire served portion, including sauces, sides and garnishes. Compare it with the selling price on the same tax basis. This recipe-level percentage is different from actual food cost based on stock movements.
Formula: Portion cost ÷ menu price × 100.
Worked example
The starting inputs are illustrative assumptions: Portion ingredient cost ($): 3.6; Menu price before tax ($): 12. They produce 30.00%. These inputs are editable and are not market prices or industry benchmarks.
Use the result
A low percentage can still leave few dollars for rent and wages if the selling price is low. Check contribution per item as well.
Keep the period, unit and currency consistent across the inputs. A calculator cannot identify a missing cost from the figures you provide. Retain an invoice or stock-count record for the inputs, and use the result as a check on your operating decision.
Sources and method
Checked October 29, 2026. Example inputs and computed results are identified in the text.
- The Principles of Menu Engineering. BC Cook Articulation Committee / BCcampus. Food-cost percentage, menu pricing and contribution margin formulas. Checked 2026-10-29.