MyBreakeven
FOOD & RECIPE COSTS · FREE · NO SIGNUP

Menu Pricing Calculator

Compare an ingredient-percentage price with a full contribution price. Test your proposed price against monthly commitments, expected sales and deliverable capacity.

Editorial illustration of restaurant cost and business planning
Illustrative planning scene. The example amounts are fictional; use your own records.

Quick answer

With $6 ingredients, $4 other variable costs and a 3% fee, a 30% ingredient target gives $20 and $9.40 contribution. A 55% contribution target requires $23.81, rounded upward. These methods answer different questions.

Your menu price inputs

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Menu price and monthly funding test

Price at target contribution marginUSD 23.81
Variable cost / selling unitUSD 10.00
Contribution at entered priceUSD 11.34
Monthly funding requirementUSD 20,000.00
Planned contribution less requirement-USD 722.00
Different price methods answer different questions
MethodRounded-up price
Target ingredient percentageUSD 20.00
Target contribution percentageUSD 23.81
Fund requirement at whole monthly capacityUSD 22.21

The ingredient-target price leaves USD 9.40 full contribution per unit; the contribution-target price leaves USD 13.10.

At your tested price, required whole monthly sales: 1,764. Whole monthly capacity: 1,733.

The funding target does not fit entered capacity.

Capacity-price output is a funding floor under these assumptions. It does not establish willingness to pay or demand. The monthly result subtracts the stated funding requirement; it is not accounting net profit.

Food costing engine 1.0.0. Calculations retain precision; displayed money rounds to cents. Price floors round upward.

What this calculator includes

  • Calculate privately in this tab without an account.
  • Use one connected workflow for recipe cost, period food usage and selling-price decisions.
  • Keep ingredients, variable contribution and monthly funding requirements distinct.
  • Use explicit weight, volume and count units without assuming ingredient density.
  • View worked examples, formulas and source references.

How to test a menu price after fees

  1. Use ingredient cost per serving or whole item from the recipe calculator.
  2. Add sale-dependent labor, packaging and other non-percentage costs once.
  3. Enter fees, your chosen ingredient percentage and contribution percentage separately.
  4. Enter the selling price you actually want to test. The alternative price outputs do not automatically replace it.
  5. Define the monthly funding requirement and the comparable expected sales and capacity. Review fixed scope and owner compensation carefully.
  6. Compare the required whole units, capacity and contribution at expected volume before treating a price as feasible.

Food-cost, contribution and capacity price formulas

Ingredient-target price = ingredient cost ÷ target ingredient rate. It excludes the other variable costs when setting price.

Contribution-target price = all non-percentage variable cost ÷ (1 − fee rate − target contribution rate). The denominator must be positive.

At the tested price, contribution = price × (1 − fee rate) − non-percentage variable cost. Required units = ceiling(monthly funding requirement ÷ positive contribution).

Whole monthly capacity = floor(weekly capacity × 52/12). Capacity funding price = (variable cost + monthly requirement ÷ whole monthly capacity) ÷ (1 − fee rate), rounded upward. Zero capacity has no capacity-based price.

Checked pricing and capacity comparison

The default costs total $10. A $20 ingredient-target price leaves $20 × 0.97 − $10 = $9.40 contribution. A 55% contribution target needs $10 ÷ 0.42 = $23.8095…, rounded upward to $23.81.

At the entered $22 price, contribution is $11.34. A $20,000 monthly requirement needs 1,764 whole sales. Weekly capacity of 400 gives 1,733 whole monthly units; the target does not fit.

Expected volume of 1,700 leaves $19,278 contribution and a $722 shortfall against the requirement. The capacity-based price floor is $22.21, assuming all 1,733 available monthly units sell. This is not evidence customers will pay that price.

Check price, scope and deliverable demand together

  1. Keep a serving, a whole cake and a customer check as separate possible units; match every cost and capacity entry.
  2. For multiple items, use a stable representative mix or run separate scenarios. Do not assign the full overhead to every item.
  3. If expanding capacity adds payroll or equipment commitments, revise the monthly requirement before comparing the new result.
  4. After a price change, review paid volume, portion practice, contribution and kitchen time using actual records.

Assumptions and limits

One consistently defined selling unit and a stable cost/channel mix. Percentage fees stay constant. Required monthly units round up; capacity uses weekly units × 52/12 and rounds down. Price floors round up to cents. The funding requirement includes only entered fixed commitments, additional owner compensation and profit goal. Existing labor compensation must not be duplicated. No seating, kitchen bottleneck, demand prediction or accounting net-profit calculation is provided.

Frequently asked questions

Is a 30% food-cost target a 70% profit margin?

No. It leaves 70% of price before labor, packaging, selling fees and fixed costs. The contribution calculation deducts all entered variable costs and fees separately.

Is contribution margin the same as markup?

No. Contribution percentage divides contribution by selling price; markup divides a price uplift by cost. This target uses margin on revenue.

Why is the capacity price different from the margin price?

One funds a stated monthly requirement at the available whole-unit capacity; the other meets a chosen per-unit contribution ratio. Both depend on inputs, not customer demand predictions.

How should I enter owner labor?

If the same owner work is already costed as variable labor, do not also enter it as additional monthly owner pay. A separate profit goal is beyond that compensation.

Can I price delivery orders separately?

Yes. Run a separate consistent scenario with that channel’s fees, packaging and other costs. Do not apply a delivery commission to unrelated dine-in sales.

Does a feasible capacity target guarantee sales?

No. The tool checks your entered volume and capacity. Demand, willingness to pay and operational bottlenecks still need evidence.

Method references

Check the full monthly business target

Check whether your contribution can fund overhead, owner pay and your profit target, then compare the required sales with your available working capacity.

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Published by MyBreakeven. Method and examples checked . Business calculation methodology · Check scope and corrections.