Restaurant Menu Pricing Calculator

There are two defensible ways to price a menu item. The first is the food cost method: divide your ingredient cost by your target food cost percentage. The second is contribution margin pricing: set a target dollar contribution per cover, then add that to your total plate cost. Most operators use a combination of both.

This calculator computes both prices for your item, shows you the implied cost multiplier, tells you how your current price compares, and gives you the interpretation you need to make a defensible decision. Results appear instantly -- no email required.

Food Cost Method vs. Contribution Margin: Which Should You Use?

The food cost method works well for high-volume items where consistency matters -- it ensures every plate earns the same margin percentage. Contribution margin pricing works better for labor-intensive items or when you need a specific dollar return per cover regardless of ingredient cost. Fine dining operators typically lean on contribution margin. Quick service and fast casual typically use food cost percentage. Most operators benefit from seeing both numbers before deciding.

How to Price a Menu Item Step by Step

Start with your total ingredient cost for one serving -- every component, including garnishes and sauces. Then choose your method: for food cost pricing, divide that ingredient cost by your target food cost percentage (e.g. $4.50 ingredient cost / 0.30 = $15.00 menu price). For contribution margin, add your target dollar contribution per cover to your total plate cost. Compare both results, check against what your market will bear, and land on a price that works for both your P&L and your guests.