• David B Townsend

Food Cost Margins- Excel Formulas


If you searched the web for a couple simple formulas to calculate food costs, and are looking for just a basic formula or two, you get false leads and click on a dozen pages only to find you need to join, pay, or download something. It's a waste of time.


Here is a basic formula, (with more to come) which you will find helpful. I will give you the Excel spreadsheet version simply for asking if you email me your request. No strings attached. If I get a ton of requests, this may take a day or two, as this is not an 'automatic' reply. Its me and my PC. Be Patient.

email: dbtown@att.net

I will forward an Excel Spreadsheet you can then use and change to your liking.


Excel formula Calculates Food Cost, Food Margins

Food Cost Margin:

=(retail-cost)\retail

type this into the cell, where 'retail' is cell B43 =(B43-C43)/B43

type this into the cell to then calculate the Food Cost: =1-D43

B C D E

40 RETAIL COST GROSS FOOD

MARGIN COST

41 This sample offers the option of meeting a Food Cost that is desired and

how much your retail needs to be based on ingredient costs

42

43 $12.00 $4.30 64.2% 35.8%

44 $12.50 $4.30 65.6% 34.4%

45 $13.00 $4.30 66.9% 33.1%

46 $13.50 $4.30 68.1% 31.9%

47 $14.00 $4.30 69.3% 30.7%