Free restaurant tool

Restaurant Food Cost Calculator

Work out food cost percentage for one dish — or for a whole week or month using inventory and purchases.

Example: Chicken Biryani

What one serving costs to prepare

What the guest pays for that dish

Food cost %

30%

Common working range for many restaurant concepts

Food cost
₹120
Selling price
₹400
Remaining before other costs
₹280

The amount remaining after food cost is not profit. It still has to cover staff salaries, rent, electricity, gas, packaging, delivery commissions, taxes, wastage, and other operating expenses.

Restaurant food cost formula

For one dish: food cost % = food cost ÷ selling price × 100. For a week or month, use inventory movement (COGS): food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales × 100.

Example (per dish): food cost ₹120, selling price ₹400. 120 ÷ 400 × 100 = 30%. ₹280 remains before other restaurant costs.

How to interpret the result

A 30% food cost means ₹30 of every ₹100 of that dish’s selling price is ingredients. It does not tell you whether the restaurant made money that day. If the percentage is higher than you can afford, you can raise the price, reduce the portion, change the recipe, or use the menu pricing calculator to test a new starting price.

Restaurant use cases

Use per-dish mode when costing a new plate. Use period mode after a stocktake. Pair this with recipe costing when ingredients are shared across dishes, and with the food waste calculator when the gap is in the bin rather than on the plate.

These calculators use standard restaurant maths for education. They are not accounting, tax or legal advice — confirm important decisions with your accountant or adviser.

Frequently asked questions

How do you calculate food cost percentage?

Divide the ingredient cost of one serving by the selling price, then multiply by 100. If food cost is ₹120 and the dish sells for ₹400, food cost % is 120 ÷ 400 × 100 = 30%.

What is food cost percentage?

It is the share of the selling price that goes to the food used to make the dish. The rest is not profit — it still has to cover salaries, rent, energy, packaging, commissions, tax, and waste.

Is 30% food cost right for every restaurant?

No. 30% is a common working example, not a rule. The right percentage depends on the restaurant concept, menu, location, pricing strategy, and operating costs.

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