Cost → Menu Price
Enter your cost to calculate the menu price based on your target margin.
Quick presets:
Menu Price → Cost
Enter your menu price to calculate the maximum allowable cost.
Quick presets:
Price + Cost → GP%
Enter both price and cost to calculate your actual margin.
Recipe / Plate Builder
Build your dish with multiple ingredients and calculate the total cost per portion.
Quick presets:
Results
Frequently Asked Questions
What's the difference between GP% and Markup%?
Gross Profit % (GP%) is calculated as a percentage of your selling price: GP% = (Selling Price - Cost) / Selling Price × 100
Markup % is calculated as a percentage of your cost: Markup% = (Selling Price - Cost) / Cost × 100
For example, if an item costs £3 and sells for £10 ex-VAT: GP% = 70%, but Markup% = 233%. Most UK hospitality operators use GP% as it's easier to budget and forecast.
Should I use ex-VAT or inc-VAT when calculating GP?
Always use ex-VAT prices when calculating gross profit. VAT is a tax that you collect on behalf of HMRC and pass on—it's not part of your revenue or profit.
If you accidentally use inc-VAT prices, your GP% will appear artificially inflated and your pricing decisions will be wrong. This calculator separates ex-VAT and inc-VAT clearly to avoid this common mistake.
Which UK VAT rate should I pick (0%, 5%, 20%)?
20% (Standard rate) applies to most restaurant and café meals consumed on your premises.
5% (Reduced rate) was temporarily introduced during COVID but has now ended for most hospitality (check current HMRC guidance).
0% (Zero-rated) applies to cold takeaway food, certain bakery items, and some catering supplies.
Hot takeaway food is typically standard-rated at 20%. Always check the latest HMRC guidance for your specific situation, as VAT rules can be complex.
How do overheads and discounts affect GP%?
Overheads % (labour, utilities, rent) are added to your direct ingredient cost before calculating the menu price. For example, if your ingredient cost is £3 and you add 20% overheads, your total cost becomes £3.60.
Discounts % are applied to the final inc-VAT menu price and will reduce your GP%. A 10% discount to customers means your actual margin will be lower than your target. Use this feature to model promotions and see the real impact on profitability.
What rounding rules are best for menus?
Common UK menu pricing strategies:
- £X.95 or £X.99 — Psychological pricing (£4.95 feels cheaper than £5.00)
- £X.49 — Mid-range appeal, common in casual dining
- £X.00 or £X.50 — Clean, premium feel for fine dining
- Round to £0.05 or £0.10 — Easier for cash handling, quicker service
Choose the rounding that matches your brand positioning and customer expectations.
Can I save or export my calculations?
Yes! You can:
- Save calculations to your browser (stored locally, private to you)
- Export to CSV for spreadsheet analysis
- Print or save as PDF using your browser's print function
- Copy results to paste into emails or documents
Note: Saved calculations are stored in your browser's local storage and will be cleared if you clear your browsing data.