Food Cost Percentage Calculator: A Restaurant Key Metric
Work out a restaurant's food cost percentage — the share of food sales eaten up by ingredients, and a make-or-break profitability metric.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Food cost percentage | Gross margin |
|---|---|---|
| $9k food · $30k sales | 30.00% | 70.00% |
| $14k food · $40k sales | 35.00% | 65.00% |
| $6k food · $25k sales | 24.00% | 76.00% |
| $22k food · $55k sales | 40.00% | 60.00% |
How This Calculator Works
Enter the cost of food used over a period and the food sales for the same period. The calculator divides one by the other to give the food cost percentage, and shows the complement — the gross margin left for labor, overhead, and profit.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
Ingredients costing $9,000 against $30,000 of food sales give a 30% food cost percentage. The remaining 70% is gross margin — the money available to cover everything else and leave a profit.
Key Insight
Many restaurants target a food cost percentage around 28% to 35%. A figure drifting higher signals a pricing, portioning, waste, or supplier problem — and at a thin overall margin, a few points decide profitability.
Frequently Asked Questions
What is food cost percentage?
It is the cost of food used as a percentage of food sales. It shows how much of each sales dollar is spent on the ingredients behind the dish.
What is a good food cost percentage?
Many restaurants aim for roughly 28% to 35%, though it varies by concept. Fine dining and steakhouses often run higher; some quick-service models run lower.
How do I calculate cost of food used?
Take opening inventory, add purchases, and subtract closing inventory. That is the food actually used in the period, which is what the ratio needs.
How can I lower food cost percentage?
Adjust menu pricing, tighten portion control, cut waste, renegotiate with suppliers, or rework low-margin dishes. Small changes compound across a busy kitchen.
Does this include labor?
No. Food cost percentage covers ingredients only. Labor is tracked separately, and the two together are often called prime cost.
Related Calculators
Methodology & Review
Food cost percentage is the cost of food used divided by food sales, expressed as a percentage. The complement is the gross margin left to cover labor, overhead, and profit.
Written by Ugo Candido · Last updated May 17, 2026.