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.
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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:
- First, determine the food sell price ($).
- The food sell price ($) is given as: 75.
- Next, determine the food cost of preparation and ingredients ($).
- The food cost of preparation and ingredients ($) is provided as: 60.
- 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
Test your knowledge using the equation and check your answer with the calculator above.
FPM = (FSP – FC) / FSP * 100 = ?
