Enter the food sell price (\$) and the food cost of preparation and ingredients (\$) into the Food Profit Margin Calculator. The calculator will evaluate and display the Food Profit Margin.

## Food Profit Margin Formula

The following formula is used to calculate the Food Profit Margin.

FPM = (FSP – FC) / FSP * 100

• Where FPM is the Food Profit Margin (%)
• FSP is the food sell price (\$)
• FC is the food cost of preparation and ingredients (\$)

## How to Calculate Food Profit Margin?

The following example problems outline how to calculate Food Profit Margin.

Example Problem #1:

1. First, determine the food sell price (\$).
• The food sell price (\$) is given as: 75.
2. Next, determine the food cost of preparation and ingredients (\$).
• The food cost of preparation and ingredients (\$) is provided as: 60.
3. Finally, calculate the Food Profit Margin using the equation above:

FPM = (FSP – FC) / FSP * 100

The values given above are inserted into the equation below and the solution is calculated:

FPM = (75 – 60) / 75 * 100 = 20 (%)

Example Problem #2:

For this problem, the variables required are provided below:

food sell price (\$) = 89

food cost of preparation and ingredients (\$) = 70