• 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:


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




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


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%

I also have a spreadsheet to calculate the cost and retail margins on a coffee and self-serve soda program. It allows one to enter cost of items like the beans, syrup, the cup you are using and even calculates the amount of liquid vs. ice and give you a chance to really see how the margins work out.

If you are interested, email me directly stating you would like the coffee/soda program SS as well. : dbtown@att.net