This menu price calculator helps you set menu prices from your food cost. Enter what the ingredients in one portion cost you and the food cost percentage you are aiming for, and the calculator above gives a suggested selling price. Below, you will find how food cost percentage works, the formula, common target ranges, and what to add for GST, packaging and delivery commissions.
All numbers on this page are made-up examples to explain the method. Your prices should come from your own recipes, supplier bills and costs.
What is food cost percentage?
Food cost percentage is the share of a dish's selling price that goes on the ingredients in it. If a sandwich sells for Rs 100 and its ingredients cost Rs 30, the food cost is 30%.
It is the simplest way to check whether a menu price is healthy. Rent, salaries, electricity, gas, packaging, wastage and your profit all have to come out of the remaining share.
| Term | Meaning |
|---|---|
| Ingredient cost (plate cost) | What the ingredients in one portion cost you |
| Selling price | The menu price before tax |
| Food cost % | Ingredient cost / selling price x 100 |
| Gross margin | Selling price minus ingredient cost |
How to cost a dish (plate cost)
- Write the recipe for one portion with exact weights (grams, ml, pieces).
- Take the purchase price of each ingredient from your latest bills.
- Work out cost per gram or per piece (price paid / quantity bought).
- Allow for trimming and wastage. If 1 kg of onions gives 900 g usable, the usable cost is higher than the bill price.
- Multiply each ingredient's usable cost by the quantity in the recipe.
- Add small items too: oil, butter, spices, garnish, sauces, sugar sachets.
- Add it all up. That is your ingredient cost per portion.
- Re-check every month or whenever supplier prices change.
Typical target food cost ranges
There is no single correct number. Operators commonly use rules of thumb like these as a starting point, then adjust to their own rent, staff and volume:
- Many restaurants aim for roughly 25% to 35% food cost across the menu.
- Beverages such as tea, coffee and mocktails are often run at a lower food cost than main dishes.
- Dishes with costly ingredients (paneer, cheese, meat, seafood) often run at a higher food cost, balanced by cheaper items elsewhere.
- Quick-service outlets with low rent may accept a different mix from a premium sit-down cafe.
GST on menu prices
GST on restaurant and cafe food in India depends on the type of outlet and the rules that apply to it, and these rules have changed over time. Do not assume a rate from another cafe or an old article.
- Confirm the current GST rate and whether input tax credit is allowed for your type of outlet with a chartered accountant or the official GST portal.
- Decide whether your menu shows prices inclusive or exclusive of GST, and say so clearly on the menu.
- Calculate food cost on the pre-tax price, because the tax is not your income.
Packaging and delivery app commissions
Takeaway and delivery orders carry costs that dine-in orders do not. If you price delivery items the same as dine-in without accounting for these, your margin can disappear.
- Packaging: containers, lids, bags, cutlery, tape, napkins and sauce cups. Cost them per order like an ingredient.
- Delivery app commission: aggregators usually take a percentage of the order value, plus possible charges for payment, ads or discounts. Check your own contract for the exact terms.
- Discounts you fund: app offers you agree to reduce what you receive.
- Spillage and refunds: keep a small allowance for orders that go wrong.
Many cafes keep a separate delivery price list. If you do, make sure it follows the platform's rules and local consumer rules, and that customers can see the price clearly before ordering.
Worked example (made-up numbers)
Say a cafe wants to price a paneer tikka sandwich.
| Ingredient | Quantity | Example cost (Rs) |
|---|---|---|
| Bread | 3 slices | 6 |
| Paneer (marinated) | 60 g | 21 |
| Butter | 10 g | 5 |
| Vegetables (onion, capsicum, tomato) | 50 g | 4 |
| Cheese slice | 1 | 8 |
| Chutney, mayo, spices | 4 | |
| Ingredient cost total | 48 |
- Target food cost: 30% (0.30)
- Menu price = 48 / 0.30 = Rs 160
- Rounded menu price: Rs 159 or Rs 160
- Check: 48 / 160 = 30% food cost
Delivery version of the same example
- Packaging (box, napkin, bag): say Rs 12
- Ingredient + packaging = Rs 60
- If the app commission were, say, 25% of the order value, and you want Rs 60 to stay at 30% of what you receive: price needed = 60 / 0.30 / 0.75 = about Rs 267 (0.75 is the share left after a 25% commission)
- The cafe might choose a delivery price around Rs 260 to 270, or accept a lower margin on delivery
The point is the method, not the numbers. Plug your own costs into the calculator at the top.
Pricing when you open a cafe on a low budget
- Start with a short menu (20 to 30 items). Fewer items mean fewer ingredients to buy and waste.
- Cost every item before printing the menu.
- Build some items around shared ingredients (one paneer marinade for sandwich, wrap and pizza).
- Have a few high-margin drinks to support the average.
- Do not copy another cafe's prices; your rent and costs are different.
- Review prices every quarter, or sooner if a key ingredient jumps.
- Keep notes of daily wastage; it is part of your real food cost.
For menu ideas see the cafe menu items list and a sample cafe menu with price. When prices are set, design the card in the menu card maker.
Questions and answers
How do I calculate a menu price?
Divide the ingredient cost of one portion by your target food cost as a decimal. For example, Rs 40 / 0.30 gives about Rs 133.
What food cost percentage should a cafe aim for?
A common rule of thumb is roughly 25% to 35% overall, with drinks often lower. Your own rent, staff and volume decide the right figure.
Should I include GST in my food cost calculation?
No. Calculate food cost on the price before tax. Confirm the current GST rules for your type of outlet with an accountant or the official GST portal.
Should delivery prices be higher than dine-in prices?
Many cafes price delivery separately to cover packaging and app commission. Follow the platform's rules and show prices clearly.
How often should I update menu prices?
Check costs monthly and review prices at least every few months, or when a major ingredient price changes.
Last checked: 14 October 2026