Menu price calculator
Price every item around the margin you want to keep. Enter what it costs to make and your target gross profit margin — we’ll show the menu price to charge, the profit per item, your markup multiple, and the matching food cost %.
What it costs you to make one item.
Margin is on the price, not the cost. Most kitchens aim 65–72%.
Rounds the suggested price up for tidy menu numbers.
Results
Suggested menu price
$15.00
To hit your target gross profit margin.
Gross profit
$10.50
per item
Markup multiple
3.3×
Price ÷ cost.
Food cost % equivalent
30.0%
Cost as a share of price — bridges to the food cost tool.
Margin vs. markup vs. food cost %
These three numbers describe the same sale from different angles, and mixing them up is the most common pricing mistake. Gross profit margin is the share of the menu price you keep after the item cost — it is measured against the price. Markup is how many times you multiply the cost to reach the price — it is measured against the cost. Food cost % is simply the cost as a share of the price, so it is the mirror image of margin. A $4.50 item priced at a 70% margin sells for $15.00: that is a 3.3× markup and a 30% food cost. Because margin sits on the price, a 70% margin is not the same as a 70% markup — markup would only give $7.65. If you prefer to think in food cost percentage, use our food cost calculator instead; this tool is built for operators who set prices around the profit margin they want to protect.
The formula
Menu price = Item cost ÷ (1 − Margin % ÷ 100) · Markup = Price ÷ Cost · Food cost % = Cost ÷ Price × 100
Priced your menu? Put it on a QR code.
Turn your priced menu into a QR code menu with Scanmie — adjust margins anytime and the same printed code stays current.
Menu pricing FAQ
- What is the difference between margin and markup?
- Margin is profit as a share of the selling price; markup is profit as a multiple of the cost. A 70% margin means you keep 70 cents of every dollar charged, which works out to a 3.3× markup — not a 70% markup. This calculator works in margin because it ties directly to how much of each sale you keep, but it also shows the markup multiple so you can sanity-check against supplier rules of thumb.
- How does this differ from the food cost calculator?
- They reach the same price from opposite directions. Our food cost calculator starts from a target food cost percentage (typically 28–35%), which suits kitchens that benchmark ingredient cost against price. This menu price calculator starts from a target gross profit margin, which suits operators who price around the profit they want to protect. The food cost % shown here is exactly 100% minus your margin, so you can switch tools without recalculating.
- What gross profit margin should I target?
- Food-led restaurants commonly run 65–72% gross margin (a 28–35% food cost), while bars and high-margin drinks push higher. The right target depends on your labor, rent, and concept — and remember gross profit still has to cover staff and overhead, so treat it as a floor, not take-home profit.
- Should the menu price include tax and service?
- No — this is the pre-tax, pre-service price the item needs to hit your margin. Add VAT, sales tax, or a service charge on top according to your local rules. Use the rounding option to land on tidy menu prices like $14.50 instead of awkward figures like $14.37.