Last updated: March 2, 2026 by Dr. David Park

How to Calculate Food Cost Percentage

Formula

Food cost percentage is the ratio of ingredient cost to selling price. A healthy food cost for restaurants is 28-32%, meaning ingredients should cost about one-third of the menu price.

Markup percentage shows how much you mark up over the ingredient cost. A 30% food cost corresponds to a 233% markup.

Common use cases:

  • Restaurant menu pricing
  • Food truck cost analysis
  • Catering profit planning

Frequently Asked Questions

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Dr. David Park

Applied Mathematician, PhD Mathematics

David holds a PhD in Applied Mathematics from MIT. He has published research on numerical methods and computational algorithms used in engineering and scientific calculators.

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