Menu Pricing Formula: How to Price Menu Items

By mise · Updated September 29, 2026

Quick answer: menu price = plate cost ÷ target food cost %. A $3.90 plate at a 30% target is priced at $13. Then adjust for competition, perceived value and menu engineering.

Menu prices set by guesswork are the fastest way to a busy restaurant that loses money.

Example: chicken sandwich plate cost $3.90, target food cost 30% → $3.90 ÷ 0.30 = $13.00. Price at $12.95 or $13.

Menu price calculatorPlate cost ($)Target food cost (%)

Menu price: —

Tips

Review prices when ingredient costs move more than 5%.
Drop dollar signs and trailing zeros on the menu.
Price drinks at 18–24% pour cost.

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Keep reading Pour cost and liquor cost: formula and calculator Recipe costing: how to work out the cost of a dish Menu engineering: the matrix and how to use it Markup vs Margin: Difference, Chart and Calculator All guides

Frequently asked questions

What is the menu pricing formula?

Price = plate cost ÷ target food cost percentage.

How often should I update menu prices?

Check costs monthly; reprice when a key ingredient moves 5–10%.

How do I price drinks?

Pour cost 18–24%: price = pour cost ÷ 0.20.

How much does mise cost?

A 7-day free trial, then US$33 a month per location (£26 in the UK).