How to calculate recipe cost
5 min read · 2026-09-02
Short answer: Recipe cost is the sum of what each ingredient costs in the quantity the recipe uses. Convert every pack price to a price per gram, millilitre or item, multiply by the recipe amount, and add the lines together.
Convert everything to the same unit
Suppliers sell by the kilo, the case or the litre; recipes use grams, spoons and pieces. Convert each purchase to a unit price first. 5 kg of flour at 6.50 is 0.0013 per gram.
Unit price = pack price ÷ pack size (in the recipe's unit)
Cost each line, then total
Multiply the unit price by the quantity in the recipe. Do this for every line and add them up. That total is your batch or recipe cost.
Turn batch cost into portion cost
Divide the recipe cost by the number of portions it reliably yields — not the number you hope it yields. Weigh a few portions to check.
Re-cost regularly
Ingredient prices move. Re-check your most expensive two or three ingredients every month; they drive most of the change in your costs.