To calculate recipe costs, simply put the total sum of ingredients costs and utility costs. Divide the total recipe costs by the numbers of servings. For example, if total recipe costs are $ 40.00, and it makes for 8 services, mean $40 / 8 = $5.00. That mean the recipe costs is $5.00 per serving.
Let’s simplify it: Serving is 4
 If you take 5 ingredients for recipe: Purchasing Rates are $ 2.00, $ 3.00, $ 1.50, $2.50, $2.00 – respectively.
Total will be = $ 2.00 + $ 3.00 + $ 1.50 + $2.50 + $2.00 = $11.00
Mean, Total costs of Ingredients = $11.00
 To making recipe, you need a utility such as: Gas, Electricity, Water and its costs are – $2.00, $1.50, $3.50 respectively.
Total Utility costs will be = $2.00 + $1.50 + $3.50 = $7.00
The total Costs =  +  = $11.00 + $7.00 = $18.00
The recipe costs = $18.00 / 4 (Serving) = $4.5/Serving
How it may help restaurant business?
Whether you are expecting startup business for food services, restaurant or creating a family budget, it can be easy to know – how much a meal costs? or how much cost to prepare a dish? Even it is difficult determine the true costs of a recipe per serving, with single dish may have so many ingredients in a recipe. The recipe cost calculator may help you to determine the actual cost per serving of a recipe.
- Easy to calculate each dish actual costs including all the expenses in fluent the costs.
- Determine each dish actual costs, and even help to decide price of any dish for restaurant menu.
- It may help to understand the expenditures, and ingredients costs as well utility costs for any recipe.
- You can also include some other expenses such as physical labor costs, moving and handling costs etc.
- Easy to identify actual profit, as well as it may help you to gaining the profit by accurately defining a costs and profit per dish.
- To keep fight in competition, you can be brainstorming the existing ingredients, helps to reduce the costs from the utility costs, labor costs, or any other costs that help you reduce the rates per dish.
In short, the recipe cost calculator may help to restaurant for managing the effective food cost control, competitive dish prices, profit goals, as well maintaining the reputation in the market.
Calculating Cost of recipe
There are some things that you have to consider before the calculating costs of a recipe. First of all you have to define what exactly quantity are use in the recipe. Mean it should be grams, pieces or any unit of measurements. The basic of the recipe is taking a perfect quantity of the ingredients as well you know. Hence, the costs of each ingredient are also needs to quantify and calculate the costs accordingly.
Create a draft copy of your full recipe as you actually cook it. To get perfect costs, you have to write out the entire process, ingredients, and methods that used for the recipe exactly as you are making it. Describe each ingredient with its actual quantity.
The next step is, Figure out your ingredients its costs per specific unit. The unit should be specifically describing in the note. Even with quantity are going to use in the recipe. Some of the things that makes your calculations tough enough such as – cooking oil, spices, etc., you can calculate with tablespoon.
Once you got the ingredient costs, you can calculate the total recipe costs. You have to divide by the number of servings, to achieve cost / serving.
Whenever you are going to calculate the recipe costs, you have to must consider some costs that directly impact on the dish prices. Such as overhead costs, utility costs, wages, rents, etc. These expenditures are unavoidable in restaurant including wastage.
As you know, the restaurant business is run for profit, obviously the calculating profit on each dish is much help to fix the menu for each dish. Now, calculating profit margin with cost calculator is much easy. Just add your profit percentage with dish cost and you will get serviceable dish price including profit.