Menu & Product Pricing Calculator
The standard pricing method used by restaurants and bakeries: Price = Cost ÷ Target Food Cost %. Enter your cost per unit and a target percentage (or use the suggested range) to get a suggested price.
Johnson & Wales University puts a profitable restaurant at an average of 28-35% and uses 30% in its own example. Your rent, labor and volume decide where you should sit.
Or work it the other way
Already have a price in mind? Enter it below with your cost to see the resulting food cost %.
How it works
Food cost percentage is cost ÷ selling price. The calculator rearranges it: price = cost ÷ target food cost (as a decimal). A $4.00 item at a 30% target sells at $4.00 ÷ 0.30 = $13.33. The reverse mode divides your cost by a planned price to show the food cost that price gives you.
A food cost target is the same thing as a markup, written differently: 30% food cost means selling at 1 ÷ 0.30 = 3.33 times cost; 25% means 4 times cost; 35% means about 2.86 times cost. Johnson & Wales University gives 28–35% as the average for a profitable restaurant.
Worked example
A pastry that costs $4.00 to make, priced at a 30% food cost target.
Price = $4.00 ÷ 0.30 = $13.33. At 25% it would be $16.00, and at 35% about $11.43.
Working backwards: an item that costs $1.20 and sells for $4.00 has a food cost of 1.20 ÷ 4.00 = 30%.
Common mistakes
- Confusing food cost with markup. A "30% markup" ($4.00 → $5.20) is a very different price from a 30% food cost ($4.00 → $13.33).
- Pricing from ingredient cost alone when labor is a big part of the product. Include labor and packaging in the cost, or choose a lower target percentage.
- Comparing against a price that includes VAT or sales tax. Food cost is measured against the net price you keep.
- Using a restaurant target for wholesale. If a shop resells your product it takes its own margin; Oregon State's food-business guidance puts cost of goods at no more than 25–40% of the final retail price for that model to work.
When not to rely on it
The formula gives a consistent starting price, not the right price. Local competition, what your customers expect to pay and how fast an item sells all matter, and a formula cannot see them.
Frequently asked questions
What is a good food cost percentage for a bakery?
Johnson & Wales University puts a profitable restaurant at an average of 28–35%, and uses 30% in its own pricing example. A bakery selling at retail is in a similar position; your rent, labor and volume decide where you should sit.
How do I calculate menu price from food cost?
Divide the cost per portion by the target food cost percentage as a decimal. $4.00 at 30% is $4.00 ÷ 0.30 = $13.33.
Is food cost the same as profit margin?
No. A 30% food cost leaves 70% of the price to pay for labor, rent and everything else — profit is whatever is left after all of that.
Should I round the suggested price?
Yes. Round to a price that fits your menu and local market. The formula gives a consistent starting point, not the final price.
What markup does a 30% food cost mean?
Price = cost × 3.33. In general the multiplier is 1 ÷ the food cost percentage: 25% is 4×, 35% is about 2.86×.
How should I price products I sell to shops?
Work from the shelf price backwards. A retailer typically doubles the wholesale price (keystone pricing), so your wholesale price has to cover your full cost and margin at about half of retail.
Read the guide
Sources
- Johnson & Wales University — How to price a restaurant menu for profitability — food cost % = cost ÷ sales; 28–35% average for a profitable restaurant; price = cost ÷ ideal food cost
- Oregon State University PACE — How to price a food product — keystone pricing; cost of goods at 25–40% of retail
Last reviewed: 2026-10-25. Found an error? Email contact@bakerymath.com.
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