Restaurant Menu Price & Margin Calculator
Determine the exact selling price for menu items based on raw ingredient costs, desired food cost target %, and GST tax rates.
Summary
This calculator works backward from ingredient cost and a target food cost percentage to a recommended menu price, then adds GST to get the final billed price.
It covers why the same target percentage produces different prices for different dishes, and rounding the result to a price guests actually see on a menu.
Pricing dishes accurately ensures fixed costs like rent and labor are covered comfortably while keeping menu prices competitive. This calculator covers ingredient cost only — it does not account for labour, packaging or delivery-specific costs, so a dish priced correctly for dine-in may need a different target percentage for delivery once commission is factored in.
Working backward from a target, not forward from a guess
Setting a price by feel usually means checking what similar dishes cost elsewhere. Working backward from a target food cost percentage instead means the price is set to protect your margin structure specifically, not to match a competitor's cost base — which may not even match yours.
GST sits on top of this number, not inside it
The price this calculator produces is the pre-tax menu price. GST is then applied on top at billing — 5% for most standalone restaurants, 18% for qualifying in-hotel dining — see GST on restaurants for which rate applies to you.
Why the same target percentage gives different prices for different dishes
A dish with a ₹40 ingredient cost and one with a ₹200 ingredient cost both hit a 30% food cost target, but at very different price points — ₹133 versus ₹667. That is expected and correct; food cost percentage is about margin structure, not about every dish converging on a similar price. What matters is whether the resulting price is one guests will actually pay.
Rounding the result to a price guests actually see
A calculated price of ₹287 rarely stays ₹287 on a real menu — most restaurants round to a nearby figure ending in 0, 5 or 9 for readability. Round up rather than down if the calculated figure is close to your target, since rounding down is the more common way margin quietly erodes across a full menu.
Frequently asked questions
How do you calculate menu item price from cost?
Divide the dish ingredient cost by your target food cost percentage (e.g. ₹120 / 0.30 = ₹400 base menu price).
Are the prices I enter stored or shared anywhere?
No. The calculation runs locally in your browser and nothing is sent to a server.
Can I use this to price a whole menu across multiple outlets?
Yes — it's free and unrestricted, so you can run it per dish and per outlet as ingredient costs vary.
Try Servyn free
QR ordering, GST billing, kitchen display and inventory in one platform. No card required, no hardware to buy — tell us about your restaurant and we set it up with you.
Get Servyn free