Menu Item Pricing Calculator
for Restaurant Owners
Set the right selling price for any menu item based on your actual ingredient cost and target food cost percentage. See the correct price, your gross profit per serving, and pricing at alternative food cost targets.
Ready to price your menu? Enter ingredient cost and target food cost percentage below.
All ingredients for one plate including garnish, sauce, and sides
Recommended for Casual Dining: 25–32%
Enter your ingredient cost and
target food cost % to see the price
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How to price a menu item
Most operators set prices intuitively — based on what feels right or what competitors charge. The result is a menu where some items are profitable and others are not, often without the operator knowing which is which.
The correct approach starts with actual ingredient cost and a target food cost percentage. The selling price that achieves your target is your floor. Use our food cost percentage calculator to establish your current overall food cost before pricing individual items.
The menu pricing formula
Core Formula
Selling Price = Ingredient Cost ÷ Target Food Cost %
Example: A grilled salmon dish costs $9.20 in ingredients. Your target food cost is 30%. Correct selling price = $9.20 ÷ 0.30 = $30.67. Round to $30.95.
Target food cost by restaurant type
| Restaurant Type | Target | Minimum | Maximum |
|---|---|---|---|
| Fine Dining | 25% | 22% | 28% |
| Casual Dining | 30% | 25% | 35% |
| Fast Casual | 28% | 25% | 32% |
| Food Truck | 32% | 28% | 36% |
| Catering | 30% | 25% | 35% |
| Cafe / Bakery | 27% | 22% | 32% |
Frequently asked questions
How do you calculate the selling price of a menu item?
Divide the total ingredient cost by your target food cost percentage. For example, if a dish costs $8 to make and your target food cost is 30%, the selling price should be $8 ÷ 0.30 = $26.67, rounded to $26.95 or $27.
What food cost percentage should I target for menu pricing?
Target food cost varies by restaurant type. Fine dining typically targets 22–28%. Casual dining 25–32%. Fast casual 25–31%. Always price to your specific restaurant type, not a generic industry average.
Should I round menu prices to .95 or .99?
Research consistently shows .95 endings outperform .99 in restaurants. Fine dining menus often use round numbers ($28 rather than $27.95) as round numbers signal confidence and quality.
How often should restaurant menu prices be updated?
Review menu prices quarterly at minimum. With food inflation running at 3–7% annually, most operators need to adjust prices at least twice per year to maintain target food cost percentages.
References
National Restaurant Association. (2025). State of the Restaurant Industry 2025. NRA Educational Foundation. restaurant.org
Cornell Center for Hospitality Research. (2023). Menu Engineering: Pricing Strategy and Consumer Psychology. Cornell University School of Hotel Administration.