Food Cost Percentage Calculator

Last Updated: May 26, 2025

Created by

Saqib Hanif

Saqib Hanif is the CEO and founder of Calculator Value. He builds calculators and educational content across sports, math, and science, and supports a limited set of construction-related calculators. Read full profile

Our Food Cost Percentage Calculator uses standard restaurant industry formulas.

Key Formulas

Food Cost % = (Food Cost ÷ Food Sales) × 100
Food Cost = Food Sales × (Food Cost % ÷ 100)
Food Sales = Food Cost ÷ (Food Cost % ÷ 100)

Example: With 2,500 dollars in food costs and 10,000 dollars in food sales, your food cost percentage is 25%.

Industry target: Most restaurants aim for 28-35% food cost percentage.

All monetary calculations use standard 2-decimal precision.

Industry-Standard Formulas: The formulas and methods used in this calculator follow widely accepted standards in Financial.
Careful Verification: The calculator is tested to ensure it behaves correctly across a range of inputs.
Continuous Updates: The calculator is updated as needed to reflect better accuracy and usability.

Related Calculators

Restaurant VAT→Pour Cost→Food Cost Calculator for Recipes→Menu Pricing→

Whether you are a restaurant owner, kitchen manager, or a chef, understanding the food cost percentage helps to control expenses, and boost profit margin. In this guide, I will explain What Food Cost Percentage is, how it works, the formula, along with examples and a few FAQs.

What Is Food Cost Percentage?

Food Cost Percentage is a key performance indicator (KPI) in the food and drink industry. It is a financial measurement that shows you how much of your sales are being spent on ingredients. If we define it in simple terms, it shows how much of your revenue is used to cover the food cost.

A restaurent owner is calculating food cost percentage

To understand how it works, let's proceed with a formula and a few examples.

Food Cost Percentage Formula — Examples

Here is the formula used to calculate the food cost percentage:

Food Cost Percentage = (Food Cost / Food Sales) × 100

Example:

For instance, if you're a restaurant owner and you spend 300 dollars on food, and it generates sales of 1000 dollars. Let's calculate food cost percentage:

Food Cost: 300 dollars,
Food Sales: 1000 dollars

Calculate it:

Food Cost % = (300 / 1000) × 100 = 30%

We have found that 30% of your revenue goes to the food cost. Our Food Cost Percentage Calculator makes the calculation automatic and instantly provides your result in real time.

Why Is Food Cost Percentage Important?

A good food cost percentage helps a food business to stay profitable. Here is why it's important to monitor:

Cost Control: Food cost percentage helps mange high or low food costs to prevent waste, and poor pricing.
Profitability: Helps to figer out whether the food business is running at a profit or loss.
Pricing Strategy: It helps to set and control pricing wisely.
Benchmarking: Gives an overview of food cost based on industry standards, which generally fall between 25% and 35%.

Frequently Asked Questions

What is considered a decent food cost percentage?

A Lower food cost percentage is generally better for profitability. In most restaurants, a range between 25% and 35% is considered a good cost percentage. However, it can also be depend on the type of food bussines and other factors.