How to use the recipe cost calculator
- For each ingredient, enter its name, the package price, the package size with its unit, and the amount used with its unit.
- Use Add an ingredient for more. Units can differ within the same kind, such as pounds for the package and ounces for the recipe.
- Enter how many servings the recipe makes, a waste percent and your target food cost.
- Read the total cost, the cost per serving and the price per serving that would hit your target. Add your own price to see the food cost percent and the gross profit.
Formula
Ingredient cost = package price x amount used / package size, both in the same base unit
Total = sum of ingredient costs x (1 + waste %)
Cost per serving = total / servings
Price for a target food cost = cost per serving / target food cost %
Food cost % at your price = cost per serving / selling price
Weights convert through grams and volumes through milliliters. Weights and volumes cannot be converted without a density, so each ingredient must use the same kind of unit for the package and the amount.
Worked example
Flour at $4.20 for 5 lb used at 12 oz costs $0.63. Butter at $5.60 per pound used at 8 oz costs $2.80. Eggs at $4.80 per dozen used at 3 cost $1.20, and sugar at $3.90 for 4 lb used at 10 oz costs $0.61.
Ingredients total $5.24, and with 5% waste the recipe costs $5.50. For 12 servings that is $0.46 each. At a 30% food cost target, each serving would sell for $1.53. Priced at $2.00, the food cost would be 22.9%.
Costing a recipe step by step
Find the price per unit of each ingredient, multiply by how much the recipe uses, and add them up. Then divide by servings. Doing it by package rather than by memory catches the expensive items, like butter or vanilla, that drive the total. Use the unit price calculator to compare store sizes and the ingredient grams to cups converter when a recipe lists cups.
From cost to menu price
Food businesses often set prices so that ingredient cost is a target share of the price. The target is a goal you choose, not a rule, and the right one depends on labor, rent and the kind of food. Check your margin with the profit margin calculator and the markup calculator.
What is not in the cost
Labor, packaging, utilities, delivery fees and overhead are not included. Waste covers trimming and spoilage only. If you bake to sell, keep your records of actual prices, since ingredient costs change often.
Assumptions and limits
- Prices, package sizes, amounts used, waste and the target food cost are your inputs.
- Unit conversions use exact definitions, such as 1 ounce = 28.349523125 grams and 1 US fluid ounce = 29.5735295625 milliliters.
- Eggs and other counted items use the unit each, which only converts to itself.
- Taxes, discounts, labor and overhead are not modeled.
Frequently asked questions
How do I calculate the cost of a recipe?
For each ingredient, multiply the package price by the amount used divided by the package size. Add the results, then divide by the number of servings.
What is a good food cost percentage?
It depends on the business. Some aim near 30% as a starting point, but the right figure covers labor and overhead for your case. The target is editable here.
Why can I not mix weight and volume?
Converting between them needs the density of the ingredient, which varies. Enter the package and amount in the same kind of unit, such as both by weight.
Should I include waste?
Yes, if some ingredient is lost to trimming, spills or spoilage. The waste percent adds a share of the ingredient cost to cover it.