Restaurant food cost and prime cost calculator
Food cost is what you used, not what you bought: opening inventory plus purchases minus closing inventory, divided by food sales. Add total labour for prime cost. Enter your own figures for any period and this tool works out food, beverage and prime cost percentages, and a menu price from a plate cost. A management-accounting method, not a tax calculation.
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Your own figuresRuns in your browserSummary free, no sign-upEstimate only
Try an exampleOne click fills the form. Change any number after.
Is this the right tool? It measures food cost, prime cost and menu prices from figures you already have. For what to charge on the bill, see the GST/HST and PST calculator and the restaurant GST, PST and liquor guide. For your own tax as a sole proprietor, the self-employed tax calculator.
Your estimate
32.0%
For every $100 of food sales, $32 went on ingredients. Cost of goods sold $16,000 on $50,000 of food sales.
Rules of thumb, not targets: food cost is often quoted at 28% to 35% of food sales and prime cost at around 60% to 65% for full service. Illustrative rules of thumb, not industry requirements or Finvo targets. Your concept, service model, sales mix and accounting classifications can justify different percentages.
Estimate, general information, not tax advice. A management-accounting method using the figures you entered; your books may group costs differently.
See every line behind this numberFood, drinks, labour and the menu item line by line, what it means, what to do nextGo through your numbers with us
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Estimate only, general information, not tax advice. This is a management-accounting method that uses the figures you enter, not a tax calculation: the only tax figures are the GST and BC PST shown on top of a menu price. It doesn't know how your books group costs, what your rent and profit need are, or your menu mix. The rules of thumb are commonly quoted industry ranges, not targets we promise. Book a free 15-minute call before changing prices or staffing on the strength of it.
Your food cost and prime cost, line by line
Food, drinks, labour and one menu item, each figure with a sentence on where it comes from, then what the numbers mean and what to do next. It follows every change you make above.
| Line | Amount |
|---|---|
| Food cost of goods sold | |
| Opening food inventoryWhat was on the shelf at the start, at cost. | $6,000 |
| Food purchasesWhat came in during the period, net of credits and GST claimed back. | +$15,500 |
| Closing food inventoryWhat was still on the shelf at the end. Taking it off leaves what was used. | −$5,500 |
| Food cost of goods soldWhat the kitchen used: on plates, in the bin, or eaten by staff. | $16,000 |
| Food sales, netAfter discounts, before GST and PST, without tips. | $50,000 |
| Food cost %Cost of goods sold ÷ food sales. | 32.0% |
| Beverage cost of goods sold | |
| Opening beverage inventory | $1,500 |
| Beverage purchases | +$2,800 |
| Closing beverage inventory | −$1,800 |
| Beverage cost of goods sold | $2,500 |
| Beverage sales, net | $10,000 |
| Beverage cost %Beverage cost of goods sold ÷ beverage sales. | 25.0% |
| Labour | |
| Wages and vacation pay | $14,500 |
| Employer CPP and EIThe employer's share, on top of gross pay. | +$1,100 |
| WorkSafeBC or WCB premiums | +$300 |
| Benefits and other labour costs | +$2,100 |
| Total labourEverything it cost to employ people this period. | $18,000 |
| Labour %Total labour ÷ total sales of $60,000. | 30.0% |
| Prime cost | |
| Food and beverage cost of goods sold | $18,500 |
| Total labour | +$18,000 |
| Prime costThe two costs you can change week to week. | $36,500 |
| Total sales, net | $60,000 |
| Prime cost %Prime cost ÷ total sales. | 60.8% |
| One menu item | |
| Ingredient cost of one plate | $3.60 |
| Target food cost | 30% |
| Starting pricePlate cost ÷ target. | $12.00 |
| Suggested menu priceRounded up to the next 50 cents. A starting point, not a recommendation. | $12.00 |
| Current menu price, before tax | $11.00 |
| Food cost at the current pricePlate cost ÷ current price. | 32.7% |
| Left per plate before taxPrice less ingredients: what pays for labour, rent and profit. | $7.40 |
| GST on top5% of the menu price, collected for the CRA. | $0.55 |
| Guest paysMenu price plus tax. Tax is never part of food cost. | $11.55 |
What this means
- For every $100 of food sales, $32 went on ingredients; for every $100 of drink sales, $25 did.
- Prime cost of 60.8% means $60.80 of every $100 in sales went on ingredients and people before rent, utilities or anything else.
- At $11.00 the sandwich runs a 32.7% food cost and leaves $7.40 a plate; at $12.00 it would run 30.0% and leave $8.40.
- GST of $0.55 on each $11.00 sale goes to the CRA, not to you, and isn't part of food cost.
What to do next
- Count the same way every period: same day, same time, everything at cost, high-value items first.
- Keep food, drinks and liquor apart on the count sheet and in the books, so a change in one doesn't hide in the other.
- Log waste, comps and staff meals so you can see how much of the 32.0% reached paying guests.
- Check portions and recipes on your best sellers when the number moves: cost the plate the way you serve it.
- Want it tracked monthly? Bookkeeping that posts your counts, or Restaurant CFO for a target and a plan.
Want food cost and prime cost in your monthly books? See the business membership.
Figures and rules of thumb used
The formulas are standard management accounting. The only government figures are the sales taxes shown on top of a menu price; each is dated and linked.
| Item | What is used | Source, checked |
|---|---|---|
| Cost of goods sold | Opening inventory + purchases − closing inventory, for food and for beverages separately | Standard management-accounting method, the same as our food cost and inventory guide |
| Food cost % | Cost of goods sold ÷ net sales for the same period | Standard management-accounting method |
| Prime cost % | (Food and beverage cost of goods sold + total labour) ÷ total net sales. Labour is wages and vacation pay, employer CPP and EI, WorkSafeBC or WCB premiums and benefits | Standard management-accounting method, as on restaurant accounting |
| Menu price from plate cost | Plate cost ÷ target food cost %, rounded up to the next 50 cents. A starting point, not a recommendation | Standard menu-costing method |
| Rules of thumb | Food cost often 28% to 35% of food sales; prime cost often around 60% to 65% for full service, lower for quick service | Commonly quoted industry rules of thumb, not official figures and not targets; your own target comes from your costs |
| GST | 5% on the menu price, in BC and Alberta | CRA: GST/HST and PST rates, 28 Oct 2026 |
| BC PST on drinks | 10% on liquor and 7% on soda beverages (and any drink from a soda fountain or soda gun), on the price before GST; no PST on food, coffee, tea or other non-alcoholic drinks | B.C.: Food and beverage service providers and retail liquor sellers (22 Apr 2026), 31 Oct 2026 |
| Alberta liquor | Alberta has no PST. AGLC liquor markup is generally part of the purchase cost, not an additional percentage added to a customer's bill | AGLC: Liquor markup rate schedule (effective 1 Apr 2026), 28 Oct 2026 |
How it's calculated
Three short calculations, each from figures you already have. Blank or negative boxes count as zero. When there is nothing to divide by (no sales, no target, no price) the percentage is left blank rather than guessed.
- Cost of goods sold. Opening inventory plus purchases minus closing inventory, worked out separately for food and for beverages. If the closing count is higher than opening plus purchases, cost of goods sold is shown as zero and the calculator asks you to check the counts.
- Food cost % and beverage cost %. Each cost of goods sold divided by its own net sales for the same period. Together, the two make the combined cost %.
- Total labour. Wages and vacation pay, plus the employer's CPP and EI, WorkSafeBC or WCB premiums, and benefits. Tips passed on to staff are left out: they belong to staff, not to the business.
- Prime cost %. Food and beverage cost of goods sold plus total labour, divided by total net sales. Over 100% means the period's sales didn't cover ingredients and people.
- Menu price from plate cost. The ingredient cost of one plate divided by your target food cost %, then rounded up to the next 50 cents as a starting price. The calculator also shows the dish's food cost at its current price and what each plate leaves before tax.
- Tax on top. GST of 5% on the menu price in both provinces, plus PST in BC on soda beverages (7%) and liquor (10%), worked out on the price before GST. Exclude recoverable GST and taxes collected from customers. Include non-recoverable purchase taxes and duties in the relevant cost. Alberta has no PST. AGLC liquor markup is generally part of the purchase cost, not an additional percentage added to a customer's bill.
A café in Surrey, one month
Round illustrative figures, not a recommendation. A café counts on the last day of the month, keeps drinks on a separate sheet, and pays four staff through payroll. It wants to check the price of its best-selling sandwich, which costs $3.60 to plate.
| Line | Food | Beverages |
|---|---|---|
| Opening inventory | $6,000 | $1,500 |
| Plus purchases, net of credits and GST claimed back | $15,500 | $2,800 |
| Less closing inventory | −$5,500 | −$1,800 |
| Cost of goods sold | $16,000 | $2,500 |
| Net sales | $50,000 | $10,000 |
| Cost % | 32.0% | 25.0% |
Together, $18,500 of cost of goods sold on $60,000 of sales is 30.8%. Using purchases alone, food cost would have shown as 31.0%, because there was $500 less stock on the shelf at month-end than at the start (opening $6,000, closing $5,500), so the kitchen used $500 of stock on top of what it bought.
| Line | Amount | Share of $60,000 sales |
|---|---|---|
| Wages and vacation pay | $14,500 | 24.2% |
| Employer CPP and EI | $1,100 | 1.8% |
| WorkSafeBC premiums | $300 | 0.5% |
| Benefits and other labour costs | $2,100 | 3.5% |
| Total labour | $18,000 | 30.0% |
| Food and beverage cost of goods sold | $18,500 | 30.8% |
| Prime cost | $36,500 | 60.8% |
A 60.8% prime cost sits inside the commonly quoted 60% to 65% rule of thumb for full service. Whether that is right for this café depends on its rent, its hours and the profit it needs, which is what a monthly review with a target works out. Labour shares are rounded to one decimal; the parts add to 30.0%.
| Line | Amount |
|---|---|
| Ingredient cost of one plate | $3.60 |
| Target food cost | 30% |
| Starting price ($3.60 ÷ 30%) | $12.00 |
| Current menu price, before tax | $11.00 |
| Food cost at $11.00 ($3.60 ÷ $11.00) | 32.7% |
| Left per plate before tax at $11.00 | $7.40 |
| GST on top of $11.00 (5%) | $0.55 |
| Guest pays | $11.55 |
At $12.00 the sandwich would run a 30.0% food cost and leave $8.40 a plate, $1.00 more. Whether to move the price depends on how many it sells and what guests will pay; the dollars left per plate matter as much as the percentage. If the item were a glass of wine in BC, 10% PST would go on top as well: a $10.00 glass carries $1.00 PST and $0.50 GST, so the guest pays $11.50. A soda beverage carries 7% PST in BC: a $3.00 pop carries $0.21 PST and $0.15 GST, so the guest pays $3.36.
What goes in each box, and what stays out
The numbers only mean something if they're built the same way every period. These are the usual rules; keep whichever version you choose and don't switch.
Inventory and purchases
Counts
- Everything on hand that you bought to sell, at what you paid, counted on the same day and time each period
- Purchases net of supplier credits and of the GST you claim back as input tax credits
- Open bottles and part cases, estimated by tenths
Doesn't count
- Equipment, smallwares, repairs and cleaning supplies
- Packaging and takeout containers, if you keep them out; be consistent
- GST on purchases that you claim back, and in BC, PST on liquor bought for resale (exempt with your PST number)
Sales
Counts
- Food, drink and liquor sales after discounts and comps, before GST and PST, by category
- Delivery-app orders at the menu price, with the app's commission recorded as a separate cost
- Gift cards when redeemed
Doesn't count
- GST and PST collected for the government
- Tips and mandatory gratuities passed on to staff
- Gift cards when sold, and refundable bottle or can deposits
Labour
Counts
- Gross wages and salaries for everyone who worked in the period, plus vacation pay
- The employer's share of CPP and EI, and WorkSafeBC or WCB Alberta premiums
- Group benefits, staff meals if you cost them here, uniforms, training and payroll fees
Doesn't count
- Tips passed on to staff: they belong to staff. How tips run through payroll is on the tips and payroll page
- The CPP and EI deducted from staff pay (they're already inside gross wages)
- Dividends an incorporated owner takes instead of wages (see salary vs dividend)
Plate cost
Counts
- Every ingredient in the portion you serve, including garnish, sauce, oil and the side
- Usable cost, not invoice cost: a $60 case that gives 8 kg usable from 10 kg costs $7.50 a kilo
- Re-costed when a supplier changes prices, not once a year
Doesn't count
- Labour, rent and packaging: they're paid for out of what the plate leaves
- GST and PST: they go on top of the menu price
- The percentage alone: a dish with a higher food cost % can still leave more dollars per plate
Who this is for and what it leaves out
Who this is for
- Owners and managers of restaurants, cafés, bars, bakeries, caterers and food trucks in BC or Alberta who count inventory and want the month's food cost and prime cost without a spreadsheet.
- Anyone opening a food business who wants to see how counts, purchases and sales turn into a percentage before the first month. See opening a restaurant.
- A kitchen pricing a new dish or checking an old one from its plate cost.
What it leaves out
- Your own target. The rules of thumb are commonly quoted ranges, not what your business needs; that comes from rent, labour, menu mix and the profit you want.
- Theoretical (recipe) food cost against actual, waste logs, and variance by item. A monthly review with Restaurant CFO covers those.
- Income tax, GST and PST returns, payroll remittances and Alberta liquor markup rates by product. For what to charge on the bill, use the GST/HST and PST calculator.
- Other provinces, and multi-location roll-ups: run each location on its own.
Sources, checked 28 Oct 2026; BC PST on drinks re-checked 31 Oct 2026
The food cost, prime cost and menu-pricing formulas on this page are standard management-accounting methods, not government rules. Official sources are listed for the sales-tax facts only. Rules have exceptions and can change. This page is general information, not legal or tax advice for your business.
- CRA: GST/HST calculator and rates table (Alberta 5% GST, no PST; British Columbia 5% GST, 7% PST)
- B.C.: Food and beverage service providers and retail liquor sellers, publication date 22 Apr 2026, checked 31 Oct 2026 (10% PST on liquor and 7% PST on soda beverages, on the price before GST; coffee, tea and other non-alcoholic drinks exempt; liquor for resale exempt with a PST number)
- AGLC: Liquor markup rate schedule, effective 1 Apr 2026 (markup added by AGLC to liquor sold to licensees)
- Finvo: Food cost, inventory and monthly margins (the formula, counts, recipe costing and menu pricing)
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Food cost and prime cost, answered
How do I calculate restaurant food cost percentage?
Opening inventory plus purchases minus closing inventory gives your cost of goods sold for the period. Divide it by net food sales for the same period and multiply by 100. Use purchases net of supplier credits and of GST you claim back, and sales after discounts, before GST and PST, without tips. A $16,000 cost of goods sold on $50,000 of food sales is 32%.
What is a good food cost percentage for a restaurant?
There is no single number. A commonly quoted rule of thumb is 28% to 35% of food sales, with quick-service and pizza often lower and steak and seafood higher. It is a rule of thumb, not a target we promise. Your own target comes from your rent, labour, menu and the profit you need, which is what a monthly review works out.
What is prime cost in a restaurant?
Prime cost is your cost of goods sold (food, drinks and liquor) plus total labour (wages, vacation pay, employer CPP and EI, WorkSafeBC or WCB premiums and benefits), as a share of net sales. Many full-service restaurants aim for around 60% to 65% of sales, and quick-service restaurants often aim lower; those are rules of thumb. Prime cost moves every week, which is why it is the number most operators watch.
How do I price a menu item from its food cost?
Cost the plate first: every ingredient at its usable cost, in the portion you serve. Divide the plate cost by the food cost percentage you are aiming for. A $3.60 plate at a 30% target gives a $12.00 starting price. Then check what the dish leaves in dollars and what guests will pay. GST and, in BC, PST on liquor go on top of the menu price.
Do GST and PST count in food cost?
No. Food cost uses sales before GST and PST and purchases net of the GST you claim back as input tax credits, so sales tax stays out on both sides. The 5% GST, and in BC the PST on drinks that carry it (7% on soda beverages, 10% on liquor), are added on top of your menu price and sent to the government. In Alberta there is no PST; the provincial liquor markup is built into the wholesale price you pay, so it is already inside your liquor purchases.
Should I include waste, comps and staff meals in food cost?
Yes. Food that was thrown out, given away or eaten by staff was still used, so it is in your cost of goods sold whether you record it or not. Logging waste, comps and staff meals separately shows how much of your food cost reached paying guests and where the rest went, which is where portion and ordering fixes start.
How often should I count inventory?
At least once a month, on the same day and at the same time, so each period's food cost covers the same stretch of trading and lines up with your sales cut-off. Many restaurants count high-value items such as proteins, seafood, dairy and liquor weekly. Keep food, non-alcoholic drinks and liquor on separate sheets so a change in one does not hide inside another.
Is the information I type saved or sent anywhere?
Only if you ask for the full breakdown. The calculator works in your browser, and the summary (food cost, beverage cost, labour, prime cost and the suggested menu price) needs nothing from you. If you add your name and email to open the full breakdown, we save them with the numbers you entered and the results, in our database in Canada, so our team can reply; the privacy policy says how long we keep them and how to ask us to delete them. Never type a SIN or account number. This is a management-accounting tool using your own figures, not a tax calculation; the result is an estimate and general information, not advice for your business.