Percy Plate is a web-based food cost calculator for food trucks, caterers, cottage food producers, and small restaurant owners. It lets you enter your ingredients and what you pay for them, build recipes, and instantly see the cost per serving and recommended sell price based on your target food cost percentage.

Yes. Percy Plate has a free plan that lets you create up to 10 ingredients and 5 recipes to calculate food cost. A paid subscription ($14.99/month or $119.99/year) unlocks unlimited ingredients and recipes plus inventory tracking, revenue reporting, menu engineering, Prime Cost, AI invoice scanning, FDA nutrition facts labels, FDA ingredient labels, and label printing.

How does Percy Plate calculate food cost?

You enter each ingredient, the unit you buy it in (lb, oz, gallon, etc.), and what you pay per unit. When you build a recipe, Percy Plate converts the recipe quantities to your purchase units, calculates the cost of each ingredient used, and divides by the number of servings to give you a cost per serving. It also shows the food cost percentage and a suggested sell price.

Can Percy Plate generate nutrition facts labels?

Yes. Percy Plate can look up nutrition data from the USDA FoodData Central database for each ingredient, then automatically calculate the per-serving nutrition for a recipe. It generates an FDA-format Nutrition Facts panel that can be printed directly to thermal labels (Brother, Dymo, Zebra) or Avery sheet labels in sizes 2x4 inch and 3.33x4 inch.

Can Percy Plate generate an ingredient list label?

Yes. Percy Plate generates an FDA-compliant ingredient label that lists ingredients by weight (heaviest first), automatically detects the top 9 FDA allergens, and includes your business name and net weight. Labels can be printed to thermal printers or Avery sheet labels.

What label printers work with Percy Plate?

Percy Plate supports thermal label printers including Brother QL series (DK-1202 2x4 inch labels), Dymo LabelWriter (30334 and similar), and Zebra desktop printers. It also supports Avery 5163 (2x4 inch) and Avery 5164 (3.33x4 inch) sheet labels for standard desktop printers.

Who is Percy Plate designed for?

Percy Plate is designed for small food business owners including food truck operators, cottage food producers, caterers, small restaurant owners, and anyone who sells homemade or prepared food and needs to track ingredient costs, price their menu, and produce product labels.

Does Percy Plate work on mobile?

Yes. Percy Plate is a web application that works on any device with a modern browser, including phones and tablets. You can look up ingredient costs, update recipe quantities, and check your food cost percentage from anywhere.

How do you calculate food cost percentage?

Food cost percentage = (ingredient cost per serving ÷ menu price) × 100. For example, if your ingredients cost $3.50 and you sell the dish for $12.00, your food cost percentage is 29.2%. Most food businesses target 28–35%. To set a price from a target, divide ingredient cost by your target: $3.50 ÷ 0.30 = $11.67 suggested price at 30% food cost.

What is a good food cost percentage for a small food business or bakery?

Most food businesses target a food cost percentage between 28% and 35%. Bakeries and cottage food producers often achieve lower food cost percentages (20–28%) because flour, sugar, and butter are inexpensive relative to retail prices. Full-service restaurants tend to run 30–35%. The right target depends on your labor costs, overhead, and pricing power in your market.

How do I calculate the cost per serving of a recipe?

Add up the ingredient cost for the full batch, then divide by the number of servings. For each ingredient, multiply the quantity used by the cost per unit (converting units as needed). For example: 8 oz flour at $0.89/lb = $0.89 ÷ 16 × 8 = $0.44. Sum all ingredient costs, then divide by servings. Percy Plate does this calculation automatically once you enter your ingredient prices and recipe quantities.

How does yield percentage affect recipe costing?

Yield percentage accounts for trim loss, cooking shrinkage, and waste. If you buy 1 lb of chicken but only 0.75 lb is usable after trimming, your yield is 75%. To get accurate food costs, divide the as-purchased cost by the yield percentage: $4.00/lb ÷ 0.75 = $5.33 per usable pound. Percy Plate lets you set a yield percentage (AP to EP) on any ingredient so your recipe costs reflect what you actually use.

What is the best recipe costing software for a small food business?

The best recipe costing software for a small food business depends on your needs. Percy Plate ($14.99/month) is built specifically for cottage food producers, food trucks, caterers, and small restaurants — it includes recipe costing, menu pricing, FDA ingredient labels, nutrition facts labels, inventory tracking, and revenue reporting. Competitors like meez start at $24/month and scale to $199/month. Square and Toast do not include recipe costing natively.

Is there free recipe costing software for home bakers or cottage food businesses?

Yes. Percy Plate has a free plan that includes recipe food cost calculation and menu pricing suggestions. The free plan lets you create up to 10 ingredients and 5 recipes. For unlimited recipes, FDA labels, nutrition facts, and inventory tracking, the paid plan is $14.99/month or $119.99/year. No credit card is required to start.

How do I price homemade baked goods to make a profit?

Start with your ingredient cost per batch, then divide by the number of units to get ingredient cost per item. Add packaging (boxes, bags, labels) as a per-unit cost. Then set a target food cost percentage — most cottage food bakers aim for 25–35% — and divide your total ingredient cost by that percentage to get a minimum price. For example: $0.85 ingredient cost per cookie ÷ 0.30 = $2.83 minimum price at 30% food cost. Factor in your time and overhead to ensure you are actually profitable, not just covering ingredients.

What are the labeling requirements for cottage food products?

Most states require cottage food labels to include: (1) the product name, (2) your name and home address, (3) a list of ingredients in descending order by weight, (4) a disclosure statement such as 'Made in a home kitchen not inspected by the state or local health department,' and (5) allergen declarations for any of the 9 major FDA allergens present. Some states also require net weight. Requirements vary by state — check your state's cottage food law for specifics. Nutrition Facts panels are generally not required for cottage food operations below a certain revenue threshold.

Do I need a nutrition facts label on my cottage food products?

Most cottage food producers are exempt from FDA Nutrition Facts label requirements under the small business exemption (fewer than 100 full-time employees and fewer than 100,000 units sold annually). However, you must still list ingredients in descending order by weight and declare all major allergens. Some states impose additional requirements. When in doubt, check your state's cottage food law and the FDA's small business labeling exemptions.

What allergens must I disclose on a homemade food label?

FDA requires disclosure of 9 major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame. These must be declared on all food labels, including cottage food products — even if a full Nutrition Facts panel is not required. The standard format is a 'Contains:' statement after the ingredient list, for example: 'Contains: Wheat, Eggs, Milk.' Percy Plate detects all 9 allergens automatically from your ingredient names.

How do I create a nutrition facts label for homemade food?

To create a Nutrition Facts label for homemade food: (1) look up the nutrition data for each ingredient using the USDA FoodData Central database, (2) calculate the per-serving amounts for calories, fat, carbohydrates, protein, sodium, and other nutrients, (3) format the panel according to FDA guidelines with serving size, servings per container, and daily value percentages. Percy Plate automates this — it looks up USDA nutrition data for your ingredients, calculates per-serving totals, and generates a print-ready FDA-format Nutrition Facts label for thermal or sheet labels.

How do I list ingredients in the correct order on a food label?

FDA regulations require ingredients to be listed in descending order by weight — the ingredient present in the greatest amount by weight must appear first. For example, if your muffin contains more flour than sugar, flour must be listed first. Sub-ingredients (like those in a chocolate chip) must be listed in parentheses immediately after the component. Percy Plate sorts ingredients automatically by weight when generating your label.

What information is required on a homemade food product label?

A complete homemade food label generally requires: (1) the name of the food, (2) the net quantity (weight or count), (3) an ingredient list in descending order by weight, (4) allergen declarations for all 9 major FDA allergens, (5) your business name and address, and (6) for cottage food specifically, a state-required disclosure statement such as 'Made in a home kitchen not inspected by the state health department.' Nutrition Facts panels are usually optional for small cottage food producers below certain revenue thresholds.

By Heidi Macomber · October 2, 2026

Cottage Food Business Basics: What to Know About Pricing and Labels

Launching a home-based food business is affordable, but the real secret to success lies in mastering the rules around what you can sell, how you label your treats, and how you set your prices. This guide walks you through the legal essentials, hands-on labeling tips, and a straightforward pricing formula to keep your cottage food venture both compliant and thriving.

What cottage food laws do

Cottage food laws let people make certain low-risk foods at home without needing a commercial kitchen license, but the details vary by state. Most states allow foods that are not potentially hazardous, meaning they do not need refrigeration to stay safe. Examples include baked goods, jams and jellies, candy, dried herbs, granola, and roasted nuts. Foods that require temperature control, such as cream-filled pastries, custards, meat products, or some dairy items, are usually not allowed.

Some states limit where you can sell, such as only allowing direct-to-consumer sales or farmers' markets. Others let you sell more widely, including online or in retail stores. A few states also set a maximum annual revenue for cottage food businesses. Before you start selling, check your state's official guidance from the agriculture or health department. The easiest way to find your rules is to search online for "[Your State] cottage food law," visit your state agriculture department website, or contact your local health department for up-to-date regulations. This is the best source of information and will help you avoid mistakes.

Labeling requirements (what must be on the package)

Regulators are very specific about labels. While the rules vary by state, most cottage food programs require at least the following elements on every package:

Product name.
Producer name and home address (or business name and address).
Complete ingredient list in descending order by weight (the ingredient used most goes first).
Net weight or volume (e.g., "Net Wt. 6 oz").
Allergen declaration (example: "CONTAINS: Wheat, Eggs, Milk").
A home-kitchen disclosure (exact wording varies; many states require a statement that the product was made in a home kitchen not inspected by the state).

Practical labeling tips

Getting the ingredient order right matters. Always list ingredients by weight, not by recipe steps. If sugar outweighs flour in your batch, sugar takes the top spot on your label.
If your recipe uses compound ingredients like chocolate chips, you might need to list their sub-ingredients in parentheses, depending on your state's rules. Make allergen details bold and easy to spot so customers can find them fast, and you stay on the right side of the law.
Save a label template and a master file for every product you make. That way, when you tweak ingredients or adjust weights, your labels stay accurate and consistent every time.
Selling across state lines? Play it safe by following the toughest labeling rule you find, or create separate labels for each state to cover all your bases.

Nutrition facts: when you need one (and why you might add one anyway)

Most cottage food businesses can skip the full FDA nutrition facts panel unless they're producing large volumes or making health claims. However, nutrition labels are mandatory in certain situations, such as when you sell wholesale to retailers, make specific health or nutrition claims (like "low fat" or "sugar free"), or exceed certain annual sales thresholds set by your state or the FDA. Still, many sellers choose to add one because customers appreciate transparency, and some stores insist on it. A complete nutrition label breaks down calories, macronutrients, sodium, fiber, and more per serving, all in a specific format. Calculating these numbers for complex recipes takes effort and often requires nutrition analysis software or a robust recipe-costing tool. If you decide to include a panel, be prepared for the extra time or expense.

Pricing: calculate ingredient cost per unit first

Pricing your products too low is a fast track to losing money in the cottage food world. Before you settle on retail prices, walk through these steps:

Calculate total ingredient cost per batch. Add each ingredient line by line at the purchase unit price.
Convert batch cost to cost per unit (divide by the number of cookies, jars, loaves, etc.).
Add packaging and disposables per unit (labels, jars, boxes, and shrink wrap).
Think about whether to add a labor markup. Even if you skip it in your food cost percentage, always track how many hours each batch takes. You can jot down your start and finish times in a simple notebook, set up a basic spreadsheet, or use a timer app on your phone to log hours. This way, you'll know if your business is truly paying off.
Pick a target food cost percentage--most bakers aim for 25 to 35 percent. Use your per-unit cost to reverse-engineer the retail price you need to hit your goal.

Worked example (simple)

Batch of 24 cookies: ingredient cost = $12.00 → per cookie ingredient cost = $0.50.
Packaging and label per cookie = $0.10.
Total cost per cookie = $0.60.
Target food cost = 30% → suggested retail price = $0.60 / 0.30 = $2.00 per cookie. Remember, this price excludes your labor and overhead costs, such as utilities, delivery, and market fees. You might want to bump up your retail price or tack on a service or packaging fee to cover those extras.

Common mistakes cottage food sellers make

Copying market prices without calculating your own costs.
Forgetting packaging, labels, market booth fees, or delivery expenses when pricing.
Misordering ingredient lists (weight order is enforced).
Assuming nutrition labels are optional everywhere is a mistake. Some states or retailers do require them in certain situations.
Skimping on clear allergen declarations.

Selling channels and rules to check

Farmers' markets and direct-to-consumer sales are commonly allowed.
Some states forbid retail store placement or wholesale distribution of cottage food.
Online sales and shipping rules vary: a few states allow remote sales, but others restrict interstate shipping for cottage foods. Check your state's rules before expanding channels.

How Percy Plate Fits (Practical Tools)

Percy Plate helps cottage food sellers by automatically calculating ingredient costs per recipe, generating ingredient labels with allergens listed, and creating a nutrition facts panel when needed, all based on the ingredients you enter. This speeds label compliance and pricing and reduces the risk of costly mistakes.

Quick action checklist

Verify your state's cottage food regulations at the agriculture or health department website.
Build a label template that includes product name, contact info, ingredients (by weight), net weight, allergen statement, and the required home-kitchen disclosure.
Use a recipe costing tool to compute the cost per unit and a recommended retail price.
Track labor, packaging, and market fees separately so they're visible when you revisit pricing.
Keep insurance, receipts, and batch records for at least the period your state recommends (some states require recordkeeping). Common insurance types for cottage food sellers include home-based business insurance and product liability insurance, which can help protect you in case of accidents or claims related to your products. Ask a local insurance agent for options that fit your home-based business.

Cottage food businesses offer a fantastic way to experiment with recipes and connect with customers, but your success depends on smart labeling and spot-on pricing. Percy Plate takes the guesswork out of ingredient costing, label creation, and nutrition analysis, freeing you up to focus on baking delicious products and building your brand.

Related Guides

How to Price Baked Goods: A Guide for Cottage Food Operators - Pricing baked goods for cottage food operators
How to Calculate Food Costs for Your Small Food Business - Food cost fundamentals for small businesses
Recipe Costing 101: How to Cost Out Any Recipe for Profit - Recipe costing from scratch
Baker's Labelling Software Pricing: What It Costs and How to Choose - Labelling software for home bakeries

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