How the calculation works
This calculator shows ingredient contribution. It is sometimes described as gross profit per item, but it does not deduct labor, rent, processing fees or other operating costs.
Formula: Menu price − ingredient cost.
Worked example
The starting inputs are illustrative assumptions: Menu price before tax ($): 16; Ingredient cost per serving ($): 5.2. They produce 10.80$. These inputs are editable and are not market prices or industry benchmarks.
Use the result
Compare dollars as well as percentages. A more expensive plate can leave more contribution even when its food-cost percentage is higher.
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.
- The Power of Menu Engineering, Part One. Michael L. Kasavana / AHLEI. Author explains contribution margin, menu mix and the 1982 method. No third-party chart or prose reproduced. Checked 2026-10-29.