Menu price calculator: from cost per portion to the price on the menu
Most menu prices get set by looking at what the place down the road charges. This works the other way round: start from what the plate costs you, pick the GP you need, and see the price, rounded to something that reads well on a menu, along with the GP the rounded price really makes.
Enter a cost per portion.
| GP | Food cost % | Price ex VAT | Menu price |
|---|
The formula
Menu price ex VAT = cost per portion ÷ (1 − GP). Then add VAT: × 1.2 for food that is standard-rated. A plate costing £3.00 at 70% GP is £3.00 ÷ 0.30 = £10.00 ex VAT, so £12.00 on the menu. "Times three" is a common shortcut, but on a menu that includes 20% VAT, three times the cost is only 60% GP, because a sixth of the price is VAT: £3.00 of food on a £9.00 menu price leaves £7.50 of sales and £4.50 of gross profit.
Worked example: fish and chips
Our costed fish and chips comes to £4.00 a portion at dated wholesale prices. The GP ladder for that plate on a menu with 20% VAT:
| GP | Price ex VAT | Menu price inc VAT |
|---|---|---|
| 60% | £10.00 | £12.00 |
| 65% | £11.43 | £13.71 |
| 68% | £12.50 | £15.00 |
| 70% | £13.33 | £16.00 |
| 72% | £14.28 | £17.14 |
| 75% | £16.00 | £19.20 |
Every point of GP is worth about £0.53 on this plate. Rounding £16.00 up to £16.00 lifts the GP a little; rounding down to £15.50 costs you some, and the calculator shows exactly how much.
Which VAT rate applies
Food eaten on your premises and hot food to take away are standard-rated at 20%. Most cold food to take away is zero-rated, with exceptions such as confectionery, crisps and soft drinks. If you are not VAT-registered, you charge no VAT at all, and the price ex VAT is the menu price. HMRC's notice 709/1 on catering and takeaway food is the rulebook.
Not every line needs the same GP
Aim for the GP across the menu, not on every dish. A steak at 60% GP can make more cash per plate than a pasta at 75%; sides, desserts and drinks usually carry more margin than mains. Price the high-cost dishes on cash margin and the cheap ones on GP, and check the mix with the GP calculator.
Questions people ask
What's a good GP for a menu in the UK?
65–70% on food is the usual target across pubs, restaurants and cafés, which is a food cost of 30–35% of the price before VAT. See the UK GP benchmarks for sources.
Is GP worked out on the price with or without VAT?
Without. The VAT is not yours, so GP is the net price minus the cost, divided by the net price. A £12 menu price with 20% VAT is £10 of sales to you.
Should I use .95 endings?
They read as cheaper on a café board and in takeaways. Many restaurants use whole pounds or halves to look less like a shop. Either way, check the GP the rounded price actually makes, which is what this calculator shows.
How do I find my cost per portion?
Cost the recipe line by line with the recipe cost calculator, or open one of the costed UK dishes and change the prices to yours.
Other free tools: Recipe cost calculator · Cake pricing calculator · Recipe scaler · GP calculator · Food cost calculator · Ingredient yields · Costed UK dishes · Put a calculator on your site
Run the free calculator → · See the templates → · Save your recipes free →