Our free recipe costing calculator uses a formula to calculate accurate per-plate and recipe costs. This recipe costing calculator is your turnkey solution to managing your expenses and increasing your income.
Our recipe costing calculator, which you can use below, only provides a glimpse of everything our recipe costing software can do for your business. Watch the video on right for step by step instructions on how to use the calculator! Improve your bottom line and manage and reduce your costs with the cost calculator platform available through Recipe Costing Software.
Start calculating your food cost below by entering the values for the recipe into the fields:
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For more information on how to get your recipe costs, view our full recipe costing guide below!
If you are a restaurant manager or catering company looking to learn the costs of your goods. Knowing your expenses helps you understand what to charge for your menu items so you stay profitable. Whether you use an online recipe costing calculator or a reliable automated software that integrates with your point-of-sale (POS) system, costing out a recipe can help you find the best prices for your ingredients, maximize menu items, and increase revenue.
Recipe costing allows managers and owners to take apart their current menu piece by piece and calculate how much every ingredient for each recipe costs. Once you find and add the total cost of your ingredients together, you’ll have a better idea of how much each dish costs to make. Many restaurants use this knowledge to form accurate menu prices that match their customers’ perceived values and ensure profit for the business.
Recipe costing may also help you track the cost of portion sizes to format your menu prices further. From determining ingredient costs and deciding how much to serve per dish to increasing revenue and maximizing ingredients, recipe costing can help you use portions to your advantage.
Want to learn how to calculate recipe costs? When you’re ready to start costing your recipes, gather your current recipes and prepare with a list of ingredients and meal prep items. The Recipe Costing team will upload all your ingredients and work with you to set up your recipes and menu items.
Whether you use a manual process or online software to manage your inventory, the first step to costing a recipe is counting your inventory. Write out a list of all your purchased food items for each recipe and calculate their costs. Depending on recipe types, you may choose to break down prices by ounces or other measurements. Having a working list of inventory and price points will help you in future spending when trying to increase your profit margin.
The next step involves finding each ingredient’s exact weight and measurement for every recipe, which can tell you how much each dish should cost in the future. Do this step for every recipe on your menu until you have a complete list of ingredients and quantities.
Once you’ve created a list of ingredients and found how much of each product you use per recipe, it is time to find the cost of each ingredient. To determine the exact price, look at where you buy the item, whether that’s a store or a specific vendor. List out the cost of each individual ingredient and calculate how much you’ll spend on a complete recipe. You can calculate this total by measuring specific ounces or other measurements used per recipe or using the cost of the total ingredients bought at once.
Many recipes include a portion amount that is typical of that menu item. To find the cost of portion sizes per recipe, divide the amount of the ingredients used in the meal by the total ingredient costs. Then multiply that number by the cost of the entire unit to find how much each portion costs.
Once you’ve found the total costs per recipe, add the prices together to discover how much you spend on specific recipes and ingredients overall. You can use this information to calculate the cost of ingredients per week or month and inform your future menu planning.
If you want to find the serving costs or the minimum amount you should charge for that meal on the menu, divide the total cost of the recipe by the number of portions you usually get from the recipe. Adjust this number to ensure you make a profit on meals and to inform menu prices.
Restaurant managers or industry providers use many different formulas to plan meals and find the cost of each ingredient or recipe. The food cost percentage formula, the ideal menu item formula, and the gross profit margin formula calculate different areas and prices of your recipes and meal items. Each formula offers a unique outlook on your weekly or monthly costs and profits.
The food cost percentage formula measures the cost of ingredients compared to the company’s current revenue based on the recipe’s ingredients. This formula is helpful when you want to find the cost of ingredients and where you may be able to switch ingredients or products to save money.
Calculate your food cost percentage to find an overall picture of your inventory costs, food sales, and performance of menu items. Add the total cost of your inventory and food purchases for a specific period and subtract the amount of inventory left over from this number. Divide this amount by your total sales of the food items for the same period to calculate the cost percentage.
The ideal menu item price formula finds a price for your company that helps keep your food cost ratio low. To find the ideal menu item price, divide the cost of your servings by your food cost percentage goal. This number will help you determine how much you need to charge per menu item to create an accurate and valuable menu for both you and the customer. You may need to lower or raise your prices depending on the result.
Finding your gross profit margin can help you navigate the cost of your current inventory, the goods you sell, and the revenue you receive. Many financially stable restaurants or food services look for a gross profit of more than 50%. To calculate your gross profit, subtract the cost of your goods sold from your current revenue and divide that number by your current revenue. This will tell you how much money you’re earning from your recipes.
Recipe Costing Software is one of the best options to assist your company with office tasks, inventory counts, recipe costing, and analytical reports. Recipe Costing is a product of Kitchen Porter Tech LLC, a business that works with thousands of restaurant operators worldwide. We will help you learn your current recipe costs and ingredient prices and increase future revenue. Measure the quality of your recipes while saving on inventory prices and building the best menu your restaurant or company can offer. Contact us today to learn more about the cost of your recipes, or call us at 1-407-543-6876 to speak to a representative.
