FinToolSuite

Menu Pricing Calculator

Updated April 17, 2026 · Financial Health · Educational use only ·

Restaurant menu pricing math.

Calculate menu price from ingredient cost and target food cost percentage. Enter labour allocation per dish and see the result instantly.

What this tool does

This tool calculates suggested menu price given ingredients, target food cost, and labour allocation.


Enter Values

Formula Used
Ingredient
Target %
Labour

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Restaurant menu pricing works backward from target food cost. Standard target 25-35% food cost. This calculator gives suggested price given ingredients and labour.

4 ingredients with 28% target food cost = 14.29 for food portion. Add 2 labour allocation = 16.29 suggested price. Margin 10.29 before overheads. This is minimum price; strong brands can charge more.

Mark-up matters more than you'd think. 28% vs 35% food cost on 4 ingredients = 14.29 vs 11.43 price = 1,150 extra monthly margin on 400 covers. Set targets right; implement consistently.

Quick example

With ingredient cost of 4 and target food cost of 28% (plus labour allocation per dish of 2), the result is 16.29. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Ingredient Cost, Target Food Cost %, and Labour Allocation per Dish. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Price for target = ingredient / target food cost %. Add labour allocation. Suggested = food price + labour. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this as a check-in

Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.

Example Scenario

£4 £ / 28% + £2 £ = $16.29.

Inputs

Ingredient Cost:4 £
Target Food Cost %:28
Labour Allocation per Dish:2 £
Expected Result$16.29

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Price for target = ingredient / target food cost %. Add labour allocation. Suggested = food price + labour.

Frequently Asked Questions

Premium pricing?
Above-target pricing justified by brand, experience, location. A 16 dish at 20% food cost is strong margin - works if value matches. Below-target pricing sometimes loss-leads for traffic; must be strategic.

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