# What is my food cost percentage?

Computes a restaurant’s food cost percentage for a period from inventory, purchases and food sales, or for one dish from its plate cost and menu price, and the menu price for a target food cost.

- Page: https://www.acalculator.org/food/food-cost-calculator
- JSON spec: https://www.acalculator.org/food/food-cost-calculator.json
- Version: fc90a2bd32fb

## Default answer

Example with the default inputs (Work out A period, Food inventory at start $16,000.00, Food purchases $4,000.00, Food inventory at end $17,000.00, Food sales $10,000.00): Your food cost is 30% of food sales.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| mode | Work out | The food cost for a whole period, or for one dish on the menu. |
| begin | Food inventory at start | The value of your food stock at the start of the period. |
| buy | Food purchases | Everything you bought in food during the period. |
| end | Food inventory at end | The value of your food stock left at the end of the period. |
| sales | Food sales | Your food sales for the same period. |
| plate | Plate cost | What the ingredients of one serving cost you. |
| price | Menu price | What you charge for one serving. |
| target | Target food cost | The food cost percentage you aim for; many restaurants aim for 28% to 32%. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| percent | Food cost percentage | The cost of the food you used as a percent of the food sales. |
| cost | Cost of food used | Inventory at start + purchases − inventory at end. |
| profit | Gross profit on food | Food sales minus the cost of food used. |
| plateProfit | Gross profit per plate | Menu price minus plate cost. |
| targetPrice | Menu price for your target | Plate cost ÷ target food cost, to the cent. |

## Method

Period: food cost % = (inventory at start + purchases − inventory at end) ÷ food sales × 100. Dish: food cost % = plate cost ÷ menu price × 100; menu price for a target = plate cost ÷ (target ÷ 100).

## Assumptions

- Inventory counts and purchases cover food only (no drinks, paper goods or cleaning supplies) and the same period as the sales.
- The plate cost is the ingredient cost of one serving as served, including garnish and waste you count in it.
- The target menu price is not rounded up to a menu-friendly number; round it yourself.

## Worked examples

1. mode = period, begin = $16,000.00, buy = $4,000.00, end = $17,000.00, sales = $10,000.00 gives cost = $3,000.00, percent = 30%, profit = $7,000.00. Source: US Foods, Track Your Food Cost Percentage to Drive Revenue (food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales; $16,000 + $4,000 − $17,000 over $10,000 of sales is 30%). https://www.usfoods.com/tools-tips-and-ideas/articles-and-publications/articles/track-your-food-cost-percentage-to-drive-revenue.
2. mode = period, begin = $8,250.40, buy = $12,480.75, end = $7,930.15, sales = $41,600.00 gives cost = $12,801.00, percent = 30.771635%. Source: IRS Publication 334 (2025), chapter 6, Cost of Goods Sold (inventory at beginning + purchases − inventory at end). https://www.irs.gov/publications/p334.
3. mode = dish, plate = $4.50, price = $15.00, target = 30% gives percent = 30%, plateProfit = $10.50, targetPrice = $15.00. Source: US Foods, Track Your Food Cost Percentage to Drive Revenue (ideal food cost % = total cost per dish ÷ total sales per dish). https://www.usfoods.com/tools-tips-and-ideas/articles-and-publications/articles/track-your-food-cost-percentage-to-drive-revenue.
4. mode = dish, plate = $3.85, price = $12.50, target = 28% gives percent = 30.8%, plateProfit = $8.65, targetPrice = $13.75. Source: US Foods, Track Your Food Cost Percentage to Drive Revenue (ideal food cost % = total cost per dish ÷ total sales per dish). https://www.usfoods.com/tools-tips-and-ideas/articles-and-publications/articles/track-your-food-cost-percentage-to-drive-revenue.

## FAQ

### How do I calculate food cost percentage?

Food cost % = (food inventory at start + food purchases − food inventory at end) ÷ food sales × 100. With $16,000 at the start, $4,000 bought, $17,000 left and $10,000 of food sales, you used $3,000 of food: 30%.

### What is a good food cost percentage?

US Foods puts the average at 28% to 32% for many full-service and limited-service restaurants. Fine dining often runs higher and quick service lower. Compare your own periods over time, not just one number.

### How do I price a menu item from its food cost?

Divide the plate cost by your target food cost as a decimal. A dish with $3.85 of ingredients at a 28% target sells for 3.85 ÷ 0.28 = $13.75. Round up to a menu-friendly price yourself.

### What is plate cost?

The cost of every ingredient in one serving as it goes out: the protein, sides, sauce and garnish, using what you pay per unit and the amount you use. It is the "total cost per dish" in the ideal food cost formula.

### Why use inventory instead of just purchases?

Purchases alone count food you bought, not food you used. Adding the stock at the start and taking off the stock at the end gives the food actually used in the period, the same cost of goods sold rule the IRS uses.

### What is the difference between actual and ideal food cost?

Actual food cost comes from inventory counts and sales for a period. Ideal food cost comes from plate costs and menu prices, as if nothing were wasted. A gap between them points to waste, theft or portion drift.

## Sources

- US Foods, Track Your Food Cost Percentage to Drive Revenue (food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales; ideal food cost % = total cost per dish ÷ total sales per dish; 28–32% average). https://www.usfoods.com/tools-tips-and-ideas/articles-and-publications/articles/track-your-food-cost-percentage-to-drive-revenue (retrieved 2026-10-01)
- IRS Publication 334 (2025), Tax Guide for Small Business, chapter 6, Cost of Goods Sold (inventory at beginning of year + purchases − inventory at end of year). https://www.irs.gov/publications/p334 (retrieved 2026-10-01)