What this calculation means
Target food-cost pricing solves for the selling price that would place a stated ingredient cost at a chosen share of that price.
A positive target is required. The result does not establish that customers will accept the price or that all operating costs are covered.
How to use this calculator
Enter the ingredient cost of one item and your chosen target percentage. Enter 30 for 30%; this calculator does not recommend a target.
Formula and variables
Target selling price = Food cost ÷ (Target food cost ÷ 100)
- Food costUSD
- Ingredient cost for the serving or item.
- Target food cost%
- Target percentage, such as 30 for 30%.
Dollar amounts display to cents, with exact half-cent values rounded away from zero; intermediate calculations keep full precision.
Understand your result
The answer is an ingredient-scope target price before any separate price-point rounding decision.
Worked example
Food cost is $4.50 and target food cost percentage is 30%.
Food cost: 4.5 USD
Target food cost: 30 %
- The selected 30% target is 0.30 in the formula.
- Divide $4.50 by 0.30 = $15.00. This is an illustrative target, not a recommendation.
Example result: $15.00
Frequently asked questions
Does the calculator add sales tax?
No. It solves for the tax-exclusive price on the entered cost basis. Tax-inclusive pricing is outside this calculation.
What if I round the target price?
Use the price-rounding scenario and recheck the ingredient percentage at the final price. The original algebraic target will usually change.