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How to calculate the cost of a dish step by step: a worked example

You cannot price a dish properly without knowing what it really costs. This method works for any dish, with an example using illustrative numbers (not market prices).

Last updated: 2026-11-08

The five steps

Write the recipe in weights, then calculate:

An illustrative example

Hypothetical numbers only to explain the method: a sandwich with ingredient cost 0.90 JOD, bread 0.15, sauces 0.10 and packaging 0.08. Total 1.23 JOD. With a 30% target food-cost percentage the suggested price = 1.23 ÷ 0.30 ≈ 4.10 JOD. Then compare with market prices around you and adjust.

Why recipes automate this

Ingredient prices change, so the cost you calculated yesterday is no longer right today. When the recipe is in the system and the purchase price updates with every purchase invoice, the cost updates automatically and each sale deducts the ingredients. That is what recipes do in RAWA.

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Common questions

What food-cost percentage is right?

It varies by business; many restaurants aim around a third or less. Set your target from your margin and your other costs.

Should I include yield loss?

Yes, if the weight you buy differs from the net weight on the plate, as with vegetables and bone-in chicken.

Does cost change with purchase prices?

Yes; that is why it is best updated automatically from purchase invoices.

Does RAWA calculate the cost?

Yes, recipes give each item's cost and deduct stock.