How to use the food delivery total cost calculator
- Enter the menu subtotal at the restaurant, the markup you see in the app, the service fee percent and the delivery fee.
- Open the advanced options for a small order fee, the amount it applies below and whether tax applies to fees.
- Enter your tax rate and the tip for delivery. Add a tip for pickup if you would leave one.
- Read the delivered total, the extra cost compared with pickup and the table that sets the two side by side.
Formula
food in the app = menu subtotal x (1 + markup percent)
fees = food x service fee percent + delivery fee + small order fee (when food is below the limit)
tax = tax rate x food, or x (food + fees) if fees are taxed
delivered total = food + fees + tax + tip, pickup total = subtotal + tax on subtotal + pickup tip
The comparison uses the restaurant's own prices for pickup and the same tax rate. The extra cost is the delivered total minus the pickup total.
A $20 order
A $20.00 order with a 15% markup in the app costs $23.00. A 15% service fee adds $3.45 and delivery adds $3.00. Tax of 8% on the food is $1.84, and a $3.00 tip brings the delivered total to $34.29.
Picking up the same food at menu prices costs $20.00 plus $1.60 of tax, or $21.60. The extra cost of delivery is $12.69, which is 58.8% of the pickup total. A $9 order with a $3 small order fee below $12 adds that fee to the fees line.
Fee stacking
Delivery apps often show the fees one at a time, so it is hard to see the total effect. Menu markup, service fee, delivery fee and small order fee can each look modest, but together they can add a large share to the price of the food. The extra column shows what you pay for the convenience on this order.
To compare with making the meal yourself, use the Eating Out vs Cooking at Home Cost Calculator. The Tip Calculator and the Sales Tax Calculator help check the tip and the tax lines.
Finding your numbers
Take the markup from comparing the same dish in the app and on the restaurant's menu. Take the fees from the checkout screen before you pay. Tax rules and what is taxed vary, so use the tax line on your own order to confirm the rate you enter.
Assumptions and limits
- Fees and prices come from the numbers you enter; none are built in.
- The service fee is a percent of the food, after any markup.
- The small order fee applies when the food in the app is below the limit you enter.
- Subscription memberships, promotions and discount codes are not modeled.
- Compare the same items at the same time of day for a fair result.
Frequently asked questions
Why do prices in the app differ from the menu?
Some restaurants set higher prices on delivery apps to cover the app's fees. Compare a few items to estimate the markup.
Should I tip on the menu price or the app price?
That is up to you. Enter the tip amount you plan to leave in either case.
What does tax also applies to the fees mean?
In some places fees are taxed along with the food. Tick the box if your checkout shows tax on the fees.
Can I include a membership discount?
Reduce the delivery fee and service fee to what you actually pay with the membership.