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 ($) • FC is the food cost of preparation and ingredients ($)

To calculate the food profit margin, divide the profit by the sell price, then multiply by 100.

## 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