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 · September 3, 2026

How to Price Baked Goods: A Guide for Cottage Food Operators

Pricing baked goods comes down to three numbers: ingredient cost, labor, and overhead. Your ingredient cost should be 25-30% of your selling price. A dozen cupcakes that costs $6.50 in ingredients should sell for $24 or more. Here is how to calculate it for every product in your cottage food business.

The Cottage Food Pricing Problem

Cottage food operators -- home bakers selling under state cottage food laws -- face a unique pricing challenge. You are competing against grocery store bakeries on one side and professional custom bakeries on the other. Price too low and you lose money on every sale. Price too high and customers go elsewhere.

The solution is knowing your ingredient cost down to the cent, then pricing with a consistent formula.

Step 1: Cost Your Recipe

Let us cost a batch of chocolate chip cookies (makes 24 cookies).

Ingredient	Purchase Price	Recipe Amount	Cost
All-purpose flour	$0.55/lb	2.25 cups (10 oz)	$0.34
Butter, unsalted	$4.99/lb	1 cup (8 oz)	$2.49
Brown sugar	$1.30/lb	0.75 cup (5.25 oz)	$0.43
Granulated sugar	$0.65/lb	0.75 cup (5.25 oz)	$0.21
Large eggs	$0.25/each	2 eggs	$0.50
Vanilla extract	$12.00/4oz	1 tbsp	$1.50
Baking soda	$1.20/lb	1 tsp	$0.008
Salt	$0.50/lb	1 tsp	$0.01
Chocolate chips	$3.50/12oz	2 cups (12 oz)	$3.50
Total batch cost			$8.99

Cost per cookie: $8.99 / 24 = $0.375 per cookie

Step 2: Apply Your Pricing Multiplier

The standard cottage food pricing formula:

Selling Price = Ingredient Cost / Target Food Cost Percentage

Most home bakers target 25-30% food cost. Here is how that plays out per cookie:

Target Food Cost %	Price Per Cookie	Price Per Dozen
30%	$1.25	$15.00
28%	$1.34	$16.08
25%	$1.50	$18.00
22%	$1.70	$20.40

At 25% food cost, you sell a dozen for $18.00. Your ingredient cost for a dozen is $4.50, leaving $13.50 for labor, packaging, profit, and overhead.

Step 3: Factor In Packaging and Decorations

Cottage food products need packaging. Do not forget it in your cost:

Packaging Item	Cost Per Unit
Bakery box (small)	$0.35-$0.60
Cupcake liners	$0.03 each
Cellophane bags	$0.05-$0.10
Ribbon/twine	$0.05-$0.15
Custom labels	$0.10-$0.25
Parchment paper	$0.02-$0.05 per sheet

For a dozen cookies in a bakery box with a label: add $0.50-$0.85 to your batch cost. That pushes the batch cost to $9.84, and the per-cookie cost to $0.41.

Step 4: Account for Cottage Food Overhead

Even home-based businesses have overhead beyond ingredients:

Business license and cottage food registration (varies by state, $20-$200/year)
Kitchen equipment depreciation (stand mixer, oven, pans)
Electricity and water (estimated at $0.50-$1.50 per baking session)
Insurance ($200-$500/year for cottage food liability)
Payment processing (Stripe: 2.9% + $0.30 per transaction, per stripe.com/pricing)
Marketing (business cards, social media ads, samples)

A good rule: add 10-15% to your ingredient + packaging cost to cover overhead. So if a dozen cookies costs $5.00 in ingredients and packaging, add $0.50-$0.75 for overhead. Total cost: $5.50-$5.75.

Then apply your food cost target to the combined cost:

$5.75 / 0.25 = $23.00 per dozen

Pricing Quick Reference: Common Cottage Food Products

Product	Typical Batch Cost	Suggested Price	Target %
Chocolate chip cookies (dozen)	$5.50-$7.00	$20-26	25-28%
Cupcakes (dozen, basic frosting)	$6.50-$9.00	$24-36	25-28%
Cupcakes (dozen, custom decor)	$9.00-$15.00	$36-60	25%
Layer cake (8 inch, basic)	$6.00-$9.00	$30-45	20-25%
Layer cake (custom design)	$10.00-$20.00	$50-120	15-20%
Loaf bread (sandwich)	$1.80-$2.50	$8-12	22-25%
Loaf bread (artisan/sourdough)	$2.50-$4.00	$10-18	22-25%
Brownies (dozen)	$4.00-$6.00	$18-28	22-25%
Cake pops (dozen)	$5.00-$8.00	$25-40	20-25%

Cottage Food Pricing Mistakes to Avoid

Pricing by guessing. "I think $20 sounds right" is how you lose money. Always calculate ingredient cost first.
Underpricing to "get started." New bakers often charge half what they should to attract customers. These customers expect that price forever and leave when you raise it.
Not charging for custom work. Intricate decorating, custom colors, and special requests take extra time. Charge a design fee on top of the per-dozen price.
Forgetting the cost of failure. A burnt batch, a cake that sinks, a frosting that breaks -- these cost ingredients with zero revenue. Factor 5% waste into your pricing.
Competing on price with grocery stores. You are not a grocery store. You make custom, small-batch, made-to-order products. Your prices should reflect that quality.

How Percy Plate Helps Cottage Food Operators

Cottage food pricing is repetitive -- you use the same ingredients (flour, butter, sugar, eggs) across many recipes, and you need to recalculate everything when prices change. Percy Plate handles this:

Enter butter once at $4.99/lb, and every recipe using butter updates automatically
See per-cookie, per-cupcake, per-loaf costs instantly
Adjust batch sizes and see per-unit costs change in real time
When egg prices spike, update one number and every recipe adjusts

Start free at percyplate.com -- built for small food businesses, perfect for home bakers.

Related Guides

Recipe Costing 101: How to Cost Out Any Recipe for Profit - Recipe costing from scratch
How to Price a Menu Item - General item pricing method
Baker's Labelling Software Pricing: What It Costs and How to Choose - Bakery labelling software costs and options

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