Vendor price changes
Compare current invoices with prior purchases so price creep is visible before it disappears into a monthly average.
Calculate your restaurant food cost percentage in seconds.
Free restaurant food cost calculator
Enter the same-period inventory, purchases and sales numbers below. The calculator shows cost of goods sold, food cost percentage and gross margin before labor and overhead.
Calculate food cost percentage
Use beginning inventory, purchases, ending inventory and food sales to estimate cost of goods sold and food cost percentage for the period.
Formula: Cost of goods sold = beginning inventory + purchases − ending inventory. Food cost % = cost of goods sold ÷ food sales × 100.
What the percentage does—and does not—tell you
Food cost percentage is a useful scorecard, but it does not identify the cause by itself. Vendor price increases, waste, portioning, purchasing, inventory errors and menu mix can all move the number.
Inventory usage
Track what is actually being used so abnormal usage can be separated from legitimate sales volume.
Recipe cost
Use current ingredient costs to understand menu-item food cost instead of relying on old recipe sheets.
Ordering
Use par levels and recent usage to reduce over-ordering without creating stockouts.
Frequently asked questions
How do you calculate restaurant food cost percentage?
Calculate cost of goods sold as beginning inventory plus purchases minus ending inventory. Divide that amount by food sales and multiply by 100.
What period should I use?
Restaurants commonly review food cost weekly, monthly, or for another consistent accounting period. Use inventory and sales from the same period.
Does this include labor cost?
No. This calculator estimates food cost from inventory and purchases. Labor and operating overhead are separate costs.
Why can food cost increase even when sales are strong?
Vendor price increases, waste, portion changes, inventory errors, purchasing patterns and sales mix can all increase food cost even when revenue rises.
Want this connected to your real restaurant data?
The free calculator solves one calculation. A custom restaurant system can connect invoices, inventory, vendor prices, recipes, ordering and reporting so the numbers update as the business changes.