“I just need one number: what does this dish really cost me?”
That is the right question. Most margin problems start when operators use purchase intuition instead of serving-level math.
Quick Summary
- Convert case price into usable unit cost first
- Apply yield loss before per-serving calculations
- Recalculate top sellers on a fixed weekly/monthly routine
- Use one unit system per ingredient category
Why This Matters in 2026
BLS January 2026 data still shows food-away-from-home inflation above zero. NFIB data also shows ongoing pricing pressure among small owners.
If supplier inputs move and your cost sheet does not, your menu is priced on old reality.
Core Formula Set
usableAmount = purchaseAmount x (1 - lossRate)
unitCost = purchaseCost / usableAmount
ingredientLineCost = unitCost x amountUsed
recipeCost = sum(ingredientLineCost)
costPerServing = recipeCost / servings
If any denominator is 0, return 0 and fix source data before using output.
Worked Example (One Pasta Recipe)
Assumptions:
- Chicken case: $96 for 40 lb, 8% loss
- Pasta: $1.80 per lb, no loss
- Cream: $5.20 per litre
- Servings per batch: 10
Step 1: Chicken unit cost
purchaseAmount = 40 lb = 640 oz
usableAmount = 640 x 0.92 = 588.8 oz
unitCostChicken = 96 / 588.8 = $0.163/oz
If one serving uses 6 oz chicken:
chickenLineCost = 0.163 x 6 = $0.98
Repeat for all ingredients, sum, then divide by 10 servings.
Batch vs Serving (Keep Both)
- Batch cost helps purchasing and prep planning
- Serving cost helps menu pricing and margin control
If you keep only batch cost, pricing decisions are slower and less precise.
The 4 Errors That Break Ingredient Math
- Unit mismatch (lb vs oz, ml vs litre)
- Yield loss ignored
- Sub-recipe cost not rolled up
- Old invoice prices left in sheet/app
Fix these first before changing menu prices.
12-Minute Weekly Routine
- Update top 20 ingredient prices
- Recompute unit costs with current yields
- Recalculate top 10 items by volume
- Flag any item where cost/serving moved by 5%+
- Decide: hold, portion-adjust, or reprice
This keeps costing practical for small teams.
Related Guides
- US Ingredient Cost Calculator Guide (2026)
- Recipe Cost Calculator Guide
- Food Cost Ratio Guide
- Prep Yield Calculator
- Prime Cost Guide
KitchenCost helps you update one ingredient and recalculate all connected recipes in minutes.
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