Guides
Food costing, explained
Plain-English guides to costing recipes and pricing food: the formulas, why they work, and a worked example with round numbers. The maths is the same in any currency.
Updated: 11 October 2026
Guides
- 5 min read
How to calculate food cost (formula and worked example)
The food cost formula, step by step: cost each ingredient from what you paid, add a waste allowance, then work out cost per portion and food-cost percentage.
Read - 4 min read
What food-cost percentage should you aim for?
What food-cost percentage means, the range commonly quoted for restaurants, why the right target differs between kitchens, and how to price from a target.
Read - 4 min read
How to price a menu item
A step-by-step method for pricing a dish: cost it, add waste, labour and extras, price from a food-cost target, check the profit, then round and review.
Read - 4 min read
Markup vs margin: the difference, with examples
Markup is profit as a share of cost; margin is profit as a share of the price. The formulas, a conversion table and worked examples for food businesses.
Read - 4 min read
How to price food per head for events and catering
How to work out a per-head price for a party or catering job: scale the menu to the guest count, add waste, labour and extras, then divide and add profit.
Read
Reference
Glossary
Food cost, plate cost, yield, waste factor, markup, margin, break-even and more: the food costing terms chefs and caterers use, in plain English.
ReadCostKit vs a spreadsheet
An honest comparison: when a spreadsheet is enough to cost your recipes, and where CostKit saves time by keeping prices current, with menus and saved costings.
Read
CostKit does this for every recipe, with your own market prices.
Start with 2 free recipes, no card needed. See what every dish costs you and what to charge.