Menu Pricing Calculator
Enter what a dish costs you in ingredients and the food cost percentage you're aiming for, and get the menu price that hits your margin target: plus a comparison of what that dish would sell for at other food cost levels. Updates live as you type.
Per-serving ingredient cost from your recipe card.
Most restaurants target 28–35%.
Price at different food cost targets
Pricing a dish the right way
Menu pricing has two inputs: the math and the market. The math is simple: divide your dish cost by your target food cost as a decimal. A $4.50 dish at 30% target prices at $15.00 exactly. That gives you the price that protects your margin. The market decides whether you can actually charge it: what guests expect to pay, what competitors charge, and how the dish fits your concept's positioning. When the math price is higher than the market will bear, you don't ignore the math: you re-engineer the dish, shrink the portion, or swap an expensive ingredient.
Worked example: your salmon dish costs $6.80 in ingredients. At a 30% target, the suggested price is $22.67: you'd round to $22.95 or $23.00. Gross profit per plate is about $16. At 25% target it would need $27.20 (too steep for your bistro), and at 35% it drops to $19.43 (great value, thinner margin). The comparison table above makes this trade-off visible at a glance: you can see exactly what margin you're trading for every dollar of price competitiveness.
Gross profit = Menu price − Dish cost
Tips beyond the formula
Round to prices that suit your concept: clean numbers for premium spots, .95 endings for value positioning. Build a mix: every menu needs high-dollar-profit anchors and high-margin workhorses, because the highest-margin dish isn't always the one that pays the rent. Reprice in small steps rather than big jumps, and always re-run your food cost percentage after a supplier price change: a $0.50 ingredient increase on a $15 dish moves food cost by more than 3 points.
Frequently asked questions
How do you calculate the right menu price?
Divide the dish's ingredient cost by your target food cost percentage (as a decimal). A $4.50 dish at a 30% target prices at $15.00. Then sanity-check the result against what your market will pay and what competitors charge: the math gives you the floor, and positioning gives you the ceiling.
Should I use .99 pricing on my menu?
For value-driven concepts, .99 or .95 endings can lift perceived value, but most independent restaurants now use clean round prices: they look more premium and make mental math easier for guests. The bigger win is price anchoring: place a high-margin signature dish next to a higher-priced anchor so it reads as good value. Test endings with your own clientele rather than copying chains.
Do I include sales tax or VAT in the menu price?
It depends on your jurisdiction. In the US, tax is typically added at the point of sale, so menu prices are shown before tax. In the UK, EU, and many other countries, consumer prices must include VAT by law. Price your dishes to hit your food cost target on the pre-tax amount either way, and confirm the display rules for your location.
How often should I reprice my menu?
Review prices at least quarterly, and immediately when a key ingredient jumps in cost. Many operators now use smaller, more frequent adjustments, 25 to 50 cents on a few dishes, instead of one big annual increase that guests notice. If your actual food cost has crept 2 or more points above target, it's past time.
What target food cost percentage should I use?
Most restaurants use 28–35% as the target, depending on concept and market. Quick-service and cafés often aim for 25–30%, full-service restaurants 28–35%, and steakhouses or fine dining 35–40%. Pick a target your whole menu can realistically average, not just your best-margin dish.