Why use this calculator
Understanding the true cost of home cooking helps you budget effectively and see how much you save compared to eating out. Factor in your time to see the real value of cooking at home.
How to use it
Enter the total cost of all ingredients, the number of servings, prep time, and optionally your hourly labor rate. The calculator shows cost per serving and compares it to restaurant pricing.
The formula
Cost per serving = total cost / servings; Restaurant equivalent = cost per serving * 3; True cost = cost per serving + (prep hours * labor rate / servings)
Worked examples
$25 ingredients, 4 servings
$6.25 per serving vs $18.75 restaurant equivalent
$40 ingredients, 6 servings, $20/hr labor, 45 min prep
$6.67 per serving + $2.50 labor = $9.17 true cost
When people use it
- Weekly meal planning budget comparisons
- Deciding whether to cook at home or order takeout
- Pricing meals for a home catering business
- Tracking food expenses for household budgets
Tips
- Restaurant markups are typically 3x ingredient cost, covering labour, rent, and profit
- Bulk cooking reduces cost per serving significantly
- Track ingredient costs over time to identify seasonal savings
Questions people ask
- Why use a 3x restaurant markup?
- Industry standard food cost is about 28-35% of menu price, meaning restaurants charge roughly 3x the ingredient cost to cover labor, overhead, and profit.
- Should I include energy costs?
- For most home cooks, energy costs are minimal (typically $0.10-0.50 per meal). Include it if you want maximum accuracy but it usually does not change the comparison significantly.