Recipe Profit Margin
Free Recipe Profit Margin calculator with clear step-by-step results.
About Recipe Profit Margin
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.
Formulas
Batch cost
Cost = ingredients + labour minutes / 60 x rate + packaging x portions
Margin
Margin % = (revenue - batch cost) / revenue x 100
Worked example
With the default values below, Recipe Profit Margin returns Net margin on the recipe of 42.05%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Ingredient cost for the batchminimum 0 $
- 18.5 $
- Portions per batchaccepts 1–500
- 12
- Selling price per portionminimum 0 $
- 6.5 $
- Labour time per batchminimum 0 min
- 75 min
- Labour rateminimum 0 $/h
- 18 $/h
- Packaging per portionminimum 0 $
- 0.35 $
Results
- Net margin on the recipe
- 42.05% %
- Profit per portion
- $2.73
- Profit per batch
- $32.80
- Food cost as a share of revenue
- 23.72% %
Step by step
- 1Values used
- 2Batch cost
- 3Margin
- 4Net margin on the recipe= 42.05 %
- 5Profit per portion= $2.73
- 6Profit per batch= $32.80
- 7Food cost as a share of revenue= 23.72 %
Assumptions and limits
- The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
Why does food cost percentage differ from margin?
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.
Should overheads be included?
Not here - this is contribution margin. Rent, utilities and equipment are covered from the aggregate contribution of everything you sell.