How to calculate recipe cost per serving
By MenuLedger5 min read
Add up the ingredients used in a batch, then divide by the number of servings it actually produces. That gives you the ingredient cost of one plate.
Cost per serving = total ingredient cost ÷ servings
1. Start with package prices and a measured recipe
For each ingredient, write down the price paid, the amount in the package and the amount your recipe uses. Include oil, sauces, sides and garnishes. Record whether your recipe quantities are raw or cooked.
Convert the package and recipe quantities to the same unit before dividing. A 5 kg pack contains 5,000 g. A 1 L bottle contains 1,000 ml. A case needs its contents written out: six 1 kg bags contain 6 kg in total. For a case written the way a supplier prints it, such as 6/5 lb, the case price calculator reads the notation and gives the cost per kilogram or pound.
Ingredient cost = package price ÷ package quantity × quantity used
For example, chicken bought in a 5 kg pack for $40 costs $8 per kg. Using 1 kg in a batch costs $8; the remaining chicken belongs to future batches.
2. Add the ingredient costs for the whole batch
Here is an illustrative chicken-and-rice batch that produces four equal servings. Prices are invented examples in USD, not market prices. Quantities are measured before cooking; chicken and vegetables are bought ready to use, with no trimming loss assumed.
| Ingredient / package | Used in batch | Cost |
|---|---|---|
| Chicken5 kg for $40 | 1 kg | $8.00 |
| Dry rice3 kg for $6 | 300 g | $0.60 |
| Vegetables2 kg for $8 | 500 g | $2.00 |
| Oil1 L for $8 | 50 ml | $0.40 |
| Prepared sauce1 kg for $10 | 100 g | $1.00 |
| Total batch cost | $12.00 | |
The rice calculation is $6 ÷ 3,000 g × 300 g = $0.60. Calculate every row the same way, keeping full precision until you display the result.
3. Divide by the servings you can actually sell
$12.00 ÷ 4 servings = $3.00 per serving
Use the yield of your measured portion size. If the same batch only fills three plates, each plate costs $4. A smaller scoop may change the number of portions, so weigh a finished serving and use that portion consistently.
Trimming and cooking can change usable weight. If a $10 bag of vegetables leaves 800 g after trimming, those usable vegetables cost $10 ÷ 800 g = $0.0125 per gram. A recipe using 200 g of the trimmed vegetables costs $2.50.
Use either the raw quantity needed or a cost adjusted for usable yield. Applying the same loss twice overstates the cost. For more on measuring portions and yield, see the BC Cook Articulation Committee’s guide to controlling food costs.
4. Compare the serving cost with your selling price
Divide the ingredient cost per serving by the selling price for that same serving, then multiply by 100.
$3.00 ÷ $10.00 × 100 = 30% food cost
For every $10 sale in this example, $3 goes to ingredients. The remaining $7 must still cover labour, rent, utilities, packaging and other expenses before there is any net profit. These examples exclude sales tax.
A food-cost goal helps you explore a selling price: ingredient cost ÷ goal as a decimal. A $3 serving with a 30% goal gives $3 ÷ 0.30 = $10. The goal is your choice; 30% here is an example, not a rule for every restaurant.
If ingredients rise to $4, the same $10 sale now has a 40% food cost. To return to 30%, the calculation gives about $13.33. Raising the selling price makes ingredients a smaller share of the sale. Alternatively, keeping a $10 price would require ingredient costs of $3 to reach that goal.
Check what customers will pay and what your other expenses require before choosing a menu price.
Keep the cost sheet current
Recheck the calculation when supplier prices, package sizes, ingredients or portion sizes change. Save the purchase information behind each price so you can explain why the cost moved. The worked example from a supplier invoice follows one $72 document through to a plate cost.
MenuLedger connects reviewed supplier invoices to ingredients and recipes. Once you confirm a purchase, it updates ingredient costs and recalculates your dishes. You can also work through one dish with the free food cost calculator, which does the unit conversion and the per-portion division for you.