Guide · Food costing
How to calculate food cost (step by step, with examples)
Work out what any dish costs to make — including unit conversions and waste — then turn it into a menu price. Follow along with the free calculator.
The short version
Ingredient cost = (price paid ÷ amount bought) × amount used ÷ (1 − waste %)
Add up every ingredient, divide by the number of servings, and you have the cost per plate. Divide that by your target food cost % (for example 0.30) to get the minimum price.
Step 1: write down what you paid
For each ingredient, note the price and the pack size from your receipt or supplier invoice: fettuccine $3.00 for 500 g, chicken breast $9.00 per kg, cream $4.50 per litre. Use the price you actually pay now, not last year’s.
Follow along: chicken alfredo, 4 plates
Chicken alfredo pasta
Enter your price to see food cost % and profit.
The app keeps your ingredient prices. When butter goes up, every dish that uses it updates — no re-typing.
Step 2: write down how much the recipe uses
Measure the amount that goes into one batch: 400 g pasta, 500 g chicken, 300 ml cream, 80 g parmesan, 40 g butter, 15 g garlic. Weigh where you can — it is more accurate than cups.
Step 3: convert units and work out each line
Convert the pack size into the same unit as the recipe. Cream: $4.50 per 1,000 ml, and you use 300 ml → 300 ÷ 1,000 × $4.50 = $1.35. Pasta: 400 ÷ 500 × $3.00 = $2.40.
Weight converts to weight and volume to volume. You can’t convert grams to cups without knowing the ingredient’s density, so buy and use in the same kind of unit.
Step 4: add waste and trim
If you lose 10% of the chicken to trim, you pay for 100% but only use 90%. Divide by the usable share: $4.50 ÷ 0.90 = $5.00. Garlic at 15% waste: $0.09 ÷ 0.85 ≈ $0.11.
Step 5: cost per serving and price
Add the lines: $2.40 + $5.00 + $1.35 + $1.76 + $0.32 + $0.11 ≈ $10.94 for the batch. The recipe makes 4 plates, so each costs about $2.73.
At a 30% target food cost: $2.734 ÷ 0.30 = $9.12 minimum price (rounded up to the cent). Sell at $14.00 and your food cost is about 19.6% with $11.27 gross profit per plate.
Common mistakes
- •Using old prices — re-cost when a supplier price changes
- •Forgetting oil, salt, garnish and sauces — small items add up across a menu
- •Ignoring waste on meat, fish and fresh produce
- •Mixing weight and volume (grams of flour vs cups of flour)
- •Costing one batch but selling a different portion size
Stop re-doing this in spreadsheets:
- ✓CostMyDish saves each ingredient price once and reuses it in every dish
- ✓Change a price and every dish recalculates
- ✓Free plan: 5 dishes and 20 ingredients
Common questions
What is the formula for food cost?+
Per ingredient: (price paid ÷ amount bought) × amount used, divided by (1 − waste %). Add the ingredients and divide by servings for the cost per plate.
How do I calculate food cost per plate?+
Cost the whole recipe, then divide by the number of plates it makes. A $10.94 batch that makes 4 plates costs $2.73 per plate.
How often should I recalculate food cost?+
Whenever a key supplier price changes, and at least every few months. An app that stores your prices makes this a one-minute job.
Ready to cost your next dish?
Download CostMyDish free on iPhone or Android. Type what you’re making, add ingredients with what you paid, and see your cost and a selling price in about 2 minutes.
Free plan: 5 dishes and 20 ingredients. No credit card.
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