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 · June 7, 2026 (updated July 31, 2026)

How to Calculate Food Costs for Your Small Food Business

Whether you brew lattes in a coffee trailer, sell pastries at a pop-up, or run a busy café, you face a key question: what does it really cost to create each menu item?*

Mastering food cost calculation is crucial for food business owners. It helps you price menus correctly, protect profits, and see where ingredient costs are rising. If you overlook it, profits can slip away.

What Is Food Cost, and Why Does It Matter?

Food cost is the cost of ingredients used to make a menu item, expressed as a percentage of the selling price. Most aim for 25%-35%, but it varies--for example, coffee drinks may be under 20%, while protein-heavy dinners may be over 40%.

The formula is straightforward:

Food Cost % = (Cost of Ingredients ÷ Selling Price) × 100*

For example, if a latte costs $1.20 in ingredients and sells for $5.00, the food cost is 24%.

Let’s walk through a more complex example step by step. Say you want to calculate the food cost for a breakfast sandwich made with a roll, two eggs, a slice of cheese, and two strips of bacon. Here is how you’d break it down:

List each ingredient and the quantity used:

1 roll
2 eggs
1 slice cheddar cheese
2 strips of bacon

Find the unit cost for each ingredient (for example, based on your latest supplier invoice):

Roll: $0.50 each
Eggs: $3.00 per dozen, so $0.25 each ($3.00 ÷ 12 = $0.25)
Cheddar cheese: $4.00 for a 16-slice pack, so $0.25 per slice ($4.00 ÷ 16 = $0.25)
Bacon: $5.00 for a 20-strip pack, so $0.25 per strip ($5.00 ÷ 20 = $0.25)

Multiply the unit cost by the quantity used for each:

Roll: 1 × $0.50 = $0.50
Eggs: 2 × $0.25 = $0.50
Cheddar cheese: 1 × $0.25 = $0.25
Bacon: 2 × $0.25 = $0.50

Add up the ingredient costs: $0.50 + $0.50 + $0.25 + $0.50 = $1.75
Divide by your selling price and multiply by 100 to get the food cost percentage. If you sell the sandwich for $6.00:

($1.75 ÷ $6.00) × 100 = 29%

Key takeaway: Always calculate food cost percentage to check profitability before finalizing your menu prices.

The Harder Part: Tracking It Accurately

The formula might be simple, but putting it into practice is where most small operators stumble. Here’s where things get tricky:

**Ingredient prices change.**A bag of oat flour that cost $12 last spring may cost $16 today. If your menu prices haven't changed, your margins have.
**Recipes have many components.**A custom cake might pull from a dozen ingredients, each purchased in bulk at different unit prices.
**Yield and waste matter.**Not every ingredient is used. For example, 5 pounds of carrots may yield only 4 pounds after trimming--an 80% yield. Divide the price by the yield in pounds to find the cost per usable pound. This makes your calculations more accurate.

Updating ingredient prices is a chore as costs change. Set a routine, like a monthly review, to keep costs and pricing on track. Consistent checks help you avoid surprises and maintain accuracy.

Getting Started: What You Actually Need

To calculate food cost for any item, you need three things:

A complete ingredient list for the recipe, with quantities
The current cost of each ingredient per unit (ounce, gram, cup, etc.)
Your target food cost percentage or desired selling price

With these details, you can set profitable prices and track how supplier increases affect you. If costs are high, tweak recipes, look for cheaper ingredients, or negotiate with suppliers. Compare quotes to get better deals and protect margins.

If costs stay high, review portion sizes or menu items. Remove low-margin dishes or test smaller, higher-margin specials to improve control and reach goals.

Say goodbye to food costing guesswork.*

Percy Plate is a food cost calculator designed for small independent food businesses such as bakeries, cafés, caterers, coffee trailers, and more. You can enter your ingredients, build your recipes, set your target food cost percentage, and get a suggested selling price in seconds. The free basic plan covers core features such as recipe creation and cost percentage calculation. For advanced needs, paid options unlock tools such as batch recipe management, automatic cost updates when ingredient prices change, and detailed reporting. This way, you can choose the level of features that best fit your business.

Learn more at percyplate.com.

Related Guides

Recipe Costing 101: How to Cost Out Any Recipe for Profit — Step by step recipe costing
How to Calculate Food Cost Percentage: A Complete Guide for Restaurants — Food cost percentage calculation
How to Cost a Plate of Food: The Complete Guide — Complete plate costing guide
What is Percy Plate? A Food Cost Calculator Built for Real Food Businesses — A calculator built for small food businesses

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