£5 cost. £20 menu price.
70.00% GP
£16.67 net sales · £11.67 food gross profit
Free UK GP calculator / no sign-up
Your margin. At a glance.
Gross profit calculator.
Calculate gross profit, find a selling price or set a maximum food cost. A free GP calculator with adjustable VAT for restaurants, pubs, cafés and caterers.
Calculate your gross profit.
Enter your cost and selling price to see the margin you actually make.
No sign-up. No cost data sent to us. Results displayed to two decimal places.How the calculation works
By DishLab Menu development & kitchen implementation Updated
A quick sense-checkReal numbers.
Real numbers.
Clear margins.
Illustrative prices, not recommended margins. Each example uses food cost excluding recoverable VAT and a customer price including 20% VAT.
£0.70 cost. £3.60 price.
76.67% GP
£3.00 net sales · £2.30 food gross profit
£12 cost. £48 price.
70.00% GP
£40.00 net sales · £28.00 food gross profit
These results are before staffing and overheads. Numbers shown to two decimal places; calculations use unrounded net sales. With JavaScript switched off, the examples remain readable but the buttons are disabled.
Beyond the percentageKnow what
Know what
your GP means.
Useful calculations. Clear assumptions. Better decisions about the food you serve.
Explore sourcing & profitabilityHow to calculate gross profit
Gross profit is sales revenue minus the cost of the goods sold. For menu planning, enter the food cost of a dish and its selling price on a consistent VAT basis. The gross profit percentage tells you how much of each pound of net sales is left before labour and other operating expenses.
The gross profit formula
Gross profit = net selling price − cost price
GP % = (gross profit ÷ net selling price) × 100
Net selling price means the selling price excluding sales VAT. Keep all figures on the same per-portion or trading-period basis.Enter your cost and selling price in the first tab. Select the VAT rate that applies and whether your entered price already includes it. The calculator shows GP in pounds, GP percentage, food cost percentage and markup.
A worked food GP example
Gross profit is net sales minus the corresponding cost of goods sold. For a dish, this calculator shows the food gross margin: revenue excluding sales VAT, less the complete food cost. It does not automatically deduct kitchen wages or overheads. In financial accounts, your cost-of-sales classification may include other direct costs.
| Customer pays, including VAT | £20.00 |
|---|---|
| Net sales: £20 ÷ 1.20 | £16.67 |
| Food cost, excluding recoverable VAT | £5.00 |
| Gross profit, before labour and overheads | £11.67 |
| Gross profit margin | 70.00% |
Displayed amounts are rounded to pennies; percentage calculations retain the unrounded net sales figure. Subtracting £5 directly from the VAT-inclusive £20 would incorrectly show 75% GP for this example.
Work backwards from a target GP
Use Find selling price to work out the minimum price needed for a chosen margin. Use Find maximum cost when the menu price is fixed and you need a food-cost allowance.
Reverse GP calculations
Net selling price = cost ÷ (1 − target GP ÷ 100)
Maximum cost = net selling price × (1 − target GP ÷ 100)
To add VAT, multiply a net selling price by (1 + VAT rate ÷ 100). A target GP of 100% cannot be reached with a positive cost and a finite selling price.| Target GP | Minimum selling price |
|---|---|
| 65% | £17.15 |
| 70% | £20.00 |
| 75% | £24.00 |
These are mathematical examples, not recommended targets. Required selling prices are rounded up to a penny where needed; maximum costs are rounded down. Actual GP is recalculated after rounding.
How do I calculate a 70% GP selling price? Divide cost by 0.30 to get the net selling price. Add the applicable VAT afterwards. For £5 cost with 20% VAT, £5 ÷ 0.30 × 1.20 = £20.00. The 30% is your food-cost allowance; 70% is left before other operating costs.
For a step-by-step approach to choosing rather than just calculating a price, read our menu-pricing guide.
GP margin versus markup: which percentage do you need?
Gross profit margin divides profit by net selling price. Markup divides the same profit by cost. They answer different questions, so a 70% markup is not a 70% GP.
| Measure | Calculation | Result |
|---|---|---|
| Gross profit | £10 − £5 | £5.00 |
| GP margin | £5 ÷ £10 × 100 | 50% |
| Markup | £5 ÷ £5 × 100 | 100% |
Use a GP target when your pricing brief is expressed as a margin. See the gross profit margin versus markup guide for conversions and examples.
VAT and your food margin
Sales VAT is not sales income for a VAT-registered business. If your menu price includes VAT, divide it by 1 plus the VAT rate as a decimal: for 20%, divide by 1.20. Do not simply subtract 20% from the customer price.
The calculator starts at the UK standard VAT rate of 20%, with 0%, 5% and a custom setting. VAT treatment depends on what you supply and your circumstances. Select the rate that actually applies rather than assuming every food sale is treated the same way.
For costs, exclude VAT you can recover and include VAT you cannot recover. If your business is not VAT registered, select “0% / no VAT added” and enter your actual costs including irrecoverable VAT. This is an arithmetic tool, not tax advice.
Food VAT is not determined by this calculator. Read HMRC’s catering and takeaway VAT guidance for supply-specific rules, particularly where eat-in and takeaway sales differ.
Theoretical GP is not your take-home profit
A recipe costing gives a theoretical food margin. Real results also depend on purchasing, usable yield, portion control, spoilage, staff meals, discounts and the mix of dishes sold. Cost the complete plate, including garnishes, oils, dressings and accompaniments, rather than just the main ingredient.
This food GP calculation does not automatically deduct wages, rent, utilities or other overheads. Use it alongside your management accounts, not as a substitute for a full view of business profitability.
DishLab supports menu development, product sourcing and cost control and practical kitchen implementation. The aim is food that makes sense on the plate and in your operation.
A food-cost percentage and recipe-costing worksheet helps turn pack prices into a consistent per-portion cost. For a period of trading, match net sales to stock-adjusted cost of food used, not simply the invoices paid that month.
Method: the formulas above. VAT reference: GOV.UK, checked 24 October 2026. No benchmark GP or savings are assumed. Contact DishLab on 01789 643379 about your menu and operating model.
Straight answersGross profit.
Gross profit.
Made clearer.
Common questions about GP, VAT and menu pricing.
What is a GP calculator?
A GP calculator works out gross profit from a selling price and the cost of the goods sold. For a dish, that usually means the selling price excluding VAT minus its ingredient cost. This tool also works backwards to find a selling price or the maximum cost allowed for a chosen GP percentage.
What is the difference between gross profit margin and markup?
They use different starting points. GP margin divides gross profit by sales revenue. Markup divides the same gross profit by cost. A dish costing £5 and selling for £10 excluding VAT has £5 gross profit: that is a 50% margin, but a 100% markup. Use the percentage your pricing target actually refers to.
Should I include VAT in my selling price?
Either input format works: select whether your selling price includes or excludes VAT. The calculator removes sales VAT before calculating GP. Enter ingredient costs excluding VAT you can recover. If you are not VAT registered, choose “0% / no VAT added” and include VAT you cannot recover in your costs. The setting performs the arithmetic; it does not decide your legal VAT treatment.
What is a good gross profit percentage for food?
There is no single GP target that suits every food operation. Choose a target that reflects your service model, labour, overheads, waste, pricing and sales mix. A higher theoretical food margin does not automatically mean a more profitable business. Use your own management accounts and costs to decide what your operation needs.
Can this calculator show a loss?
Yes. If your selling price excluding VAT is lower than the cost entered, the calculator shows a negative GP percentage and the loss before labour and overheads. A zero selling price has no defined margin, so you will be asked to enter a price above zero.
Why are target prices rounded up and maximum costs rounded down?
Menu prices and purchasing allowances are usually expressed in pennies. Rounding a required selling price down can leave you below your target GP. This calculator rounds it up where necessary. It rounds a maximum cost down for the same reason, then recalculates the actual GP using the rounded figure.
Can I use it for a whole menu or period of trading?
Yes, provided you use matching figures for the same period: net sales and the corresponding cost of goods sold. Do not compare a monthly purchasing invoice with sales for a single week. For a dish, include every ingredient, garnish, accompaniment and an appropriate allowance for yield or waste in the cost.
Do I need an account, and are my figures saved?
No account or email address is required. Your figures are calculated locally in your browser and are not sent to DishLab or saved by this tool. They reset when you reload the page. Copy a result or use Print / save PDF to keep a record yourself.
How do I calculate a 70% gross profit selling price?
Divide your food cost by 0.30 for a net selling price, then add the applicable VAT. At £5 food cost and 20% sales VAT, the customer price is £20. A 70% target is an example, not a recommendation for every business. Choose Find selling price to calculate your own target.
Is food cost percentage the same as GP percentage?
No. With the same food cost and net sales, food cost percentage plus food GP percentage equals 100%. A dish with 30% food cost therefore has 70% food GP before other costs. Read the food-cost guide for portion costing and period totals.
The next useful stepBetter costing.
Better costing.
Better decisions.
Original DishLab guides for the decisions behind the number. No account needed.
01 / Understand the margin
Gross profit vs markup.
Know which percentage your pricing brief needs, with worked conversions.
02 / Cost the complete plateFood cost percentage.
Turn pack prices, yields and portion sizes into useful food costs.
03 / Set a viable pricePrice your menu.
Work from food cost to a target GP, then test the wider commercial picture.
Creative in the kitchen. Commercial by design.Good numbers.
Good numbers.
Better menus.
We bring food development, sourcing and practical kitchen expertise together. Let’s talk about menus your customers want — and margins that work for your business.
DishLab · GP calculator
Menu development · Sourcing · Kitchen implementation
Example: £5 cost, £20 selling price including 20% VAT = 70% GP.
01789 643379 · dishlab.co.uk