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Food Profit Margin Calculator

Formula

The formula to calculate the Food Profit Margin (FPM) is:

$FPM = \left( \frac{FSP - FC}{FSP} \right) \times 100$

Where:

Food Profit Margin (FPM): The percentage of profit made from selling food after accounting for the cost of preparation and ingredients.
Food Sell Price (FSP): The price at which the food is sold.
Food Cost (FC): The cost of preparation and ingredients for the food.

Let's say the food sell price (FSP) is $20 and the food cost (FC) is $8. Using the formula:

$FPM = \left( \frac{20 - 8}{20} \right) \times 100$

We get:

$FPM = \left( \frac{12}{20} \right) \times 100 = 60\%$

So, the food profit margin is 60%.