How to use it
Three steps.
Enter your cost priceThe cost of one portion, excluding recoverable VAT. For a dish, include the ingredients used to produce one portion.
Enter your selling priceThe price charged to the customer, with the VAT box ticked if it includes VAT. GP is worked out on the net price.
Check your marginYour real GP, cash margin and the menu price for your target, plus what it earns over a year at your weekly sales.
A worked example
An £18 main course.
| Selling price including VAT | £18.00 |
| VAT | £3.00 |
| Net selling price | £15.00 |
| Food cost | £4.50 |
| Gross profit | £10.50 |
| Gross profit percentage | 70% |
To reach 75% GP with the same £4.50 food cost, the net price would need to be £18, or £21.60 including 20% VAT.
The common mistake
Forgetting VAT.
Work it out on the full £18 and you get 75%. But £3 of that price is VAT, not your revenue. Your real GP is 70%. Five points matter across a whole menu and thousands of covers.
Remember, gross profit is not net profit. Wages, energy and rent still come out of it.
Want to know how your whole menu is performing?
One dish is a start. The menu is the picture.
I can review your menu costing alongside actual stock movement and sales to establish what your food operation is really making, and where there's room for improvement.
Other free tools
Check another number.
GP & menu price
Your real GP on one dish or drink, the price to hit your target, and what a supplier rise does to it.
You are hereStock based GP
Your actual GP from opening stock, purchases, closing stock and net sales, with the gap in pounds.
Full page & worked example →Pour cost & bottle yield
Serves per bottle, cost per serve and what over pouring costs you a year.
Full page & worked example →