Last updated: March 2, 2026 by Maria Gonzalez

How to Calculate Food Cost Percentage

Formula

Food Cost % = (Ingredient Cost ÷ Selling Price) × 100;
Profit = Selling Price − Ingredient Cost

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

MG

Maria Gonzalez

Registered Dietitian, RD, MPH

Maria is a Registered Dietitian with a Master's in Public Health. She focuses on evidence-based nutrition assessment tools including BMI, calorie calculations, and body composition analysis.

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