Free Recipe Profit Margin calculator with clear step-by-step results.
Costs a recipe fully rather than on ingredients alone, because labour is often the larger figure for anything hand-finished. Reporting both net margin and food cost percentage lets you see whether a dish is unprofitable because of ingredients or because of the time it takes.
Batch cost
Cost = ingredients + labour minutes / 60 x rate + packaging x portions
Margin
Margin % = (revenue - batch cost) / revenue x 100
Food cost only counts ingredients. A dish at 25% food cost can still lose money if it takes an hour of skilled labour per batch of six.
Not here - this is contribution margin. Rent, utilities and equipment are covered from the aggregate contribution of everything you sell.