Restaurant Menu Price and Profit Calculator

This calculator estimates a menu item's suggested selling price and gross profit starting from unit cost assumptions.

It helps teams price menu items with a consistent method instead of ad-hoc decisions, improving margin discipline across categories.

Core inputs include ingredient cost, labor share, overhead rate, target margin, and VAT rate. Ingredient values usually come from recipe cards and supplier invoices, while labor/overhead values come from operating records.

Output quality depends on input quality. If wastage, packaging, energy, or delivery platform fees are ignored, the model may overstate profitability.

The core model is: total unit cost = (ingredient + labor) x (1 + overhead rate). Selling price excl. VAT is then derived from target margin over this total cost.

VAT amount is calculated on top of the excl. VAT price, and gross profit is interpreted as excl. VAT price minus total unit cost.

The output is a scenario result based on your assumptions, not an official tax filing, accounting close, or legally binding pricing guarantee.

Use excl. VAT price for internal margin control and incl. VAT price for customer-facing labeling. Decision quality improves when these are reviewed together.

Example: ingredient 3.20 USD, labor 1.00 USD, overhead 22%, target margin 32%, VAT 10%. Total unit cost becomes about 5.12 USD.

Estimated selling price excl. VAT is about 7.53 USD, VAT amount 0.75 USD, and final price incl. VAT 8.28 USD. Gross profit is about 2.41 USD.

The tool is useful for menu engineering, repricing rounds, and comparing product lines under a shared pricing framework.

This is informational content, not financial, tax, or legal advice. Ingredient and overhead costs can shift quickly; verify local tax and legal requirements with official authorities and qualified experts before final pricing.