What this calculation means
A target food-cost check compares the item’s current ingredient percentage with a selected target. The difference is measured in percentage points.
A percentage-point gap is not a relative percentage increase or a dollar price change.
How to use this calculator
Enter the item cost, current tax-exclusive price, and chosen target. Read the current percentage and target difference on the same cost scope.
Formula and variables
Target gap = Food cost ÷ Current selling price × 100 − Target food cost
- Food costUSD
- Ingredient cost for the item.
- Current selling priceUSD
- Current price charged.
- Target food cost%
- Target percentage, such as 30 for 30%.
The gap displays two decimal places in percentage points. The subtraction uses the unrounded actual percentage.
Understand your result
A positive gap means the actual ingredient percentage is above target. A negative gap means it is below target.
Worked example
Food cost is $5.25, price is $18, target food cost percentage is 30%.
Food cost: 5.25 USD
Current selling price: 18 USD
Target food cost: 30 %
- Actual item food cost is $5.25 ÷ $18 × 100 = 29.166666…%.
- Subtract the 30% target before rounding: −0.833333… percentage points.
- The primary display is −0.83 percentage points; the actual percentage detail displays 29.17%.
Example result: -0.83 percentage points
Frequently asked questions
Why is a gap of −0.83 not a saving of $0.83?
The output unit is percentage points. The calculation subtracts two percentages, not two dollar amounts. A target-price calculation is a separate task.
Is the actual ratio rounded before the gap is calculated?
No. The primary gap uses the unrounded ratio and then displays two decimal places. The accompanying actual ratio is shown separately to two decimals.