How is food cost percentage calculated?
Food cost percentage is the ingredient cost of one portion divided by its selling price. It is not gross margin, and it does not include rent or labour.
Formula
Food cost % = portion cost ÷ selling price per portion × 100.
Leave the selling price empty to see cost only. A selling price of zero is rejected.
How it differs from gross margin
Gross margin % = (selling price − portion cost) ÷ selling price × 100. In the example, food cost is 4.00% and gross margin is 96.00%.
A delivery commission does not change food cost. It is deducted afterwards, together with packaging you type in.
Example
- 1 kg flour costs 40.00 TRY. The recipe uses 250 g.
- Line cost: 40.00 × (250 ÷ 1000) = 10.00 TRY.
- 10 portions. Cost per portion: 10.00 ÷ 10 = 1.00 TRY.
- Selling price 25.00 TRY. Food cost: 1.00 ÷ 25.00 = 4.00%.
- Gross profit: 25.00 − 1.00 = 24.00 TRY. Gross margin: 24.00 ÷ 25.00 = 96.00%.
Questions
What food cost percentage should I aim for?
Foodmarj does not suggest a target. The percentage comes from your purchase price and your selling price.
Does commission change food cost?
No. Food cost uses ingredient cost and selling price. Commission changes the after-commission profit and the channel margin.
Source: Foodmarj. Updated 9 October 2026.