Food Truck Menu Margin Calculator
Price every menu item with confidence. Enter your selling price and costs to see profit per item, food cost %, and the exact price needed for your target margin.
💰 Menu item costs
Margin = Profit ÷ Selling Price × 100. Markup = Profit ÷ Total Cost × 100. A 65% margin equals a 185.7% markup — they are not the same.
Profit per item
$0.00
Profit margin
0.0%
Total cost
$0.00
Cost composition
of selling price
Food cost %
0%
Packaging %
0%
Labor %
0%
Payment fee
$0.00
Total cost %
0%
Contribution margin
$0.00
Markup
0%
Target price
$0.00
Target margin progress
0%
Set a target margin to see required price.
Food Truck Menu Pricing: The Complete Guide
Pricing a food truck menu is not just about covering ingredients. Successful operators track every variable cost — packaging, payment fees, labor, and overhead — to protect their profit margin. This calculator and guide help you do exactly that.
Food Cost Percentage: Your First Health Check
Food cost % = (Ingredient cost ÷ Selling price) × 100. Most food trucks aim for 28–35% food cost. Lower is not always better — underpricing can leave money on the table, while overpricing can kill volume. Use this calculator to see your food cost % instantly.
Profit Margin vs Markup: Don't Mix Them Up
Margin = Profit ÷ Selling price. Markup = Profit ÷ Total cost. A 65% margin is a 185.7% markup. Confusing the two is one of the most common pricing mistakes in food service.
| Selling Price | Total Cost | Profit | Margin | Markup |
|---|---|---|---|---|
| $12.00 | $4.75 | $7.25 | 60.4% | 152.6% |
| $10.00 | $5.00 | $5.00 | 50.0% | 100.0% |
| $8.00 | $4.00 | $4.00 | 50.0% | 100.0% |
Packaging and Payment Fees Add Up Fast
A clamshell, a wrapper, a bag, napkins, and cutlery can easily cost $0.50–$1.25 per item. Payment processing fees (typically 2.5–3.5% + $0.30 per transaction) silently eat into profit. Both must be included in your menu margin math.
Labor Allocation and Overhead
If you pay a team member $15/hour and they can make 20 items per hour, direct labor is $0.75 per item. Overhead (propane, generator, permits, insurance) should be allocated per item based on expected daily volume.
Why Low Food Cost Does Not Always Mean High Profit
A cheap ingredient that requires expensive packaging, slow assembly, or long cook times can destroy your margin. Always calculate total cost, not just food cost.
Practical Example: Smash Burger
- Selling price: $12.00
- Ingredient: $3.50
- Packaging: $0.75
- Payment fee (2.9% + $0.30): $0.65
- Labor: $1.20
- Other variable: $0.25
- Overhead: $0.50
- Total cost: $6.85 → Profit: $5.15 → Margin: 42.9%
To hit a 65% margin, required price = $6.85 ÷ (1 − 0.65) = $19.57.
Frequently Asked Questions
What is a good profit margin for a food truck menu item? ▾
Most food trucks aim for 60–70% gross margin on individual items after all variable costs. This covers overhead and leaves net profit.
How do I calculate food cost percentage? ▾
Food cost % = (Ingredient cost ÷ Selling price) × 100. Use the calculator above to see it instantly.
Why is margin different from markup? ▾
Margin uses selling price as the base; markup uses total cost. They give different percentages for the same profit.
Should I include payment processing fees in my menu pricing? ▾
Absolutely. They are a real variable cost. The calculator includes a percentage fee and a fixed fee.
How do I price for a target margin? ▾
Required price = Total cost ÷ (1 − Target margin). The calculator shows this automatically.
What is contribution margin? ▾
Contribution margin = Selling price − Total variable costs. It shows how much each item contributes to covering fixed costs and profit.
Can I use this calculator for a restaurant menu? ▾
Yes. It works for any food business — food trucks, restaurants, cafes, and ghost kitchens.