How to calculate food cost percentage

Food cost % = ingredient cost of a dish ÷ its selling price × 100.

Example: a slice of cake uses $0.90 of ingredients and sells for $3.50. Food cost is 0.90 ÷ 3.50 = 25.7%.

What a good food cost percentage looks like

Many cafes and restaurants aim for roughly 25–35%. Bakeries often run lower on simple items and higher on premium ones. The right number depends on your labor, rent and packaging, so treat any target as a starting point, not a rule.

Common mistakes

Using the pack price, not the amount used. A $2.50 bag of flour isn't the cost; the 500 g you used from a 1 kg bag is $1.25.
Ignoring waste. If 20% of a pack is trimmed or spoils, your usable cost is 25% higher.
Forgetting packaging. Boxes, cups and labels are per-portion costs too.
Old prices. Re-check when suppliers change prices.

Work it out quickly with the free recipe cost calculator.

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