Menu Price Calculator
Set menu price from plate cost and target food cost % or margin, with optional charm rounding.
Why menu price matters
Your menu price has to cover ingredients, labour, rent, utilities, and still leave room for profit. Starting from plate cost and a target food cost percentage is a classic way to set a baseline before you round for psychology (.99 endings) or competitive positioning.
You can also work from a target gross margin on the dish (margin on sales, not markup on cost). The two approaches answer slightly different questions — pick one method and stay consistent across the menu.
The formula
Use either target food cost % or target margin %:
From food cost %: menu price = plate cost ÷ (food cost % ÷ 100) From margin %: menu price = plate cost ÷ (1 − margin % ÷ 100)
Worked example
Example: Plate cost is 4.20. Target food cost is 30%. Suggested price = 4.20 ÷ 0.30 = 14.00 before rounding.
If you prefer a 65% gross margin on the item, price = 4.20 ÷ (1 − 0.65) = 12.00. Rounding up to 12.99 may better match your brand while staying near the target.
Common mistakes
Confusing markup on cost with margin on sales — they are not interchangeable.
Setting one target food cost % for every category; beverages and desserts often need different targets.
Ignoring portion drift in the kitchen (over-portioning raises true food cost above the recipe).
Frequently asked questions
Related tools
Related solutions
Run all of this automatically in Rushly. Start the free trial.
Start free trial