Food cost formula & free food cost calculator
Work out what one plate costs you, your food cost %, the menu price for the % you want, and your monthly food cost from stock — with examples in rupees.
The formula
Food cost % = food cost ÷ food sales × 100
Cost of one plate
₹95.40
Food cost %
34.1%
Gross profit per plate
₹184.60
Price for 30% food cost
₹318.00
Food cost % uses the price without GST — the 5% you collect is the government's, not sales. Gross profit here is before staff, rent and other costs.
The starting numbers are an example — replace them with your own dishes and the prices you actually paid.
How to calculate food cost — the formulas
1. Cost of one plate
Plate cost = Σ (quantity used × price paid)
- Paneer: 150 g × ₹400/kg = ₹60.00
- Butter: 20 g × ₹560/kg = ₹11.20
- Fresh cream: 30 ml × ₹220/litre = ₹6.60
- Tomato-onion gravy: 120 g × ₹80/kg = ₹9.60
- Spices, oil & garnish: 1 pc × ₹8/pc = ₹8.00
- Paneer Butter Masala (one plate): ₹95.40
2. Food cost % of a dish
Food cost % = plate cost ÷ selling price × 100
₹95.40 ÷ ₹280 (price without GST) × 100 = 34.1%
3. Menu price for a target %
Price = plate cost ÷ target food cost %
₹95.40 ÷ 30% = ₹318.00 before GST — round it to a menu price such as ₹320.
4. Monthly food cost %
Food cost = opening stock + purchases − closing stock
₹45,000 + ₹1,80,000 − ₹40,000 = ₹1,85,000; on ₹5,80,000 food sales that is 31.9% — ₹11,000 more than a 30% target.
What is a good food cost percentage?
It depends on what you sell. A café selling coffee and a fine-dining kitchen buying premium meat will never land on the same number. As a reference point, Toast quotes US National Restaurant Association data from more than 900 restaurants: a median food and non-alcoholic beverage cost of 32.0% of sales for full-service and 32.4% for limited-service restaurants, with 30–35% a common rule of thumb.
Those are US figures. Use them as a starting target, then watch your own number every month — a food cost % that keeps rising is the real warning sign, whatever the level.
GST and food cost in India
Work out food cost % on sales without GST. On purchases, a restaurant charging 5% GST can't claim input tax credit, so the GST on your ingredient bills is a real cost — keep it in the prices you enter. A hotel restaurant charging 18% with input tax credit should use purchase prices without GST. See our restaurant bill format page for the 5% / 18% rules.
Why the monthly number is higher than your plate costs
Plate costs are your theoretical food cost — every portion made exactly to recipe. The monthly figure is your actual food cost. The gap is food that left the kitchen without earning money:
- Waste and spoilage
- Bigger portions than the recipe
- Staff meals that are not recorded
- Complimentary dishes
- Supplier price rises not passed on
- Theft or billing leaks
How to bring food cost down
- Write a recipe for every dish — exact grams and ml per plate — so every cook portions the same way.
- Count stock regularly and compare it with what your sales say you should have left.
- Log every wasted dish and ingredient with a reason, so you can see where food is lost.
- Check supplier rates every month and re-cost the dishes that use what went up.
- Re-price or re-work dishes whose food cost is far above your target.
Doing this every day in billzova
- Link each dish to its ingredients once — stock goes down automatically with every bill.
- The billzova Android app shows each dish's cost per serving and food cost % from your latest ingredient rates.
- Closing stock: enter your physical count and see the gap with system stock.
- Waste log with the cost of every wasted serving.
₹399/month or ₹3,999/year, GST included. See also inventory and waste tracking.
Food cost — FAQ
How do you calculate food cost?
For a period, food cost = opening stock + purchases − closing stock. Then food cost % = food cost ÷ food sales × 100. Example: ₹45,000 opening + ₹1,80,000 purchases − ₹40,000 closing = ₹1,85,000 food cost; on ₹5,80,000 of food sales that is 31.9%.
What is the formula for food cost percentage?
Food cost % = (cost of the food used ÷ food sales) × 100. For one dish, use the cost of its ingredients and its selling price without GST.
How do I calculate the cost of one dish?
Add up what each ingredient on the plate cost you: quantity used × the price you paid per kg, litre or piece. Paneer Butter Masala (one plate): paneer ₹60.00, butter ₹11.20, fresh cream ₹6.60, tomato-onion gravy ₹9.60, spices, oil & garnish ₹8.00 = ₹95.40 per plate.
What is a good food cost percentage?
There is no single right number — it depends on your format and menu. As a reference, Toast quotes US National Restaurant Association data from more than 900 restaurants: a median of 32.0% of sales for full-service and 32.4% for limited-service restaurants, and calls 30–35% a common rule of thumb. Track your own % month to month; a rising number matters more than the exact figure.
What is food cost in a P&L?
In a restaurant profit and loss statement, food cost (cost of goods sold for food) comes straight after sales. Food sales minus food cost is your gross profit on food, before staff, rent, power and other expenses. Food cost plus labour cost is often called prime cost.
Should GST be included in food cost?
Take GST out of sales — the 5% you collect from guests belongs to the government. On purchases, a restaurant charging 5% GST cannot claim input tax credit, so the GST you pay on ingredients is part of what they cost you: include it. A hotel restaurant charging 18% with input tax credit should leave purchase GST out.
How do I price a dish from its food cost?
Divide the plate cost by your target food cost. ₹95.40 ÷ 30% = ₹318.00, so a menu price of about ₹320 (before GST) keeps that dish near 30%. If your menu shows prices with GST, add 5% on top.
Why is my monthly food cost higher than my plate costs?
Plate costs assume every portion is made exactly to recipe. Real kitchens also lose food to waste, spoilage, over-portioning, staff meals, complimentary items and theft. The gap between the two — theoretical vs actual food cost — shows how much is leaking.
Sources
- Toast — Food cost percentage: formula, benchmarks (quotes National Restaurant Association data)
- 55th GST Council press release — restaurant service at 5% without input tax credit (CBIC)
Checked on 29 October 2026. General information, not accounting or tax advice.