Menu price calculator: what to charge to hit your target GP
To hit a target gross profit, divide the dish cost by (1 − target GP), then add VAT. A dish costing £4.10 at a 70% GP target needs a net price of £13.67, which is £16.40 on the menu with 20% VAT.
Work backwards from what a dish costs and the GP you want to the price on the menu. Nothing you type is sent or saved.
Enter the dish cost.
The formula
Menu price = cost ÷ (1 − target GP) × (1 + VAT rate)
A fish and chips that costs £4.10 to plate, with a 70% GP target:
- £4.10 ÷ 0.30 = £13.67 net
- £13.67 × 1.2 = £16.40 including VAT
- Rounded up to the nearest 50p: £16.50, which is a 70.2% GP
Pricing a whole menu
Price each dish on its own, then look at the menu as a whole. Some dishes will never hit your target (a steak, say) and others will beat it easily (soup, chips, desserts). That's fine as long as the mix you actually sell lands on target. Re-cost every dish when suppliers put prices up, not once a year.
Use the GP margin calculator to check dishes already on your menu, and our guide to GP on drinks for the bar. ShiftComplete keeps your allergen matrix in step with the menu, so a recipe change updates what front-of-house tells guests.
Frequently asked questions
How do I work out a menu price from a target GP?
Divide the cost by one minus your target GP as a decimal, then add VAT. For a £4.10 dish at 70% GP: £4.10 ÷ 0.30 = £13.67 net, × 1.2 = £16.40 including VAT. Most operators then round to a sensible menu price such as £16.50.
Should prices end in .95 or round numbers?
That's a brand choice rather than a rule. Many pubs and cafés use whole or half pounds because it reads as straightforward; others use .95. What matters more is that each price clears your GP target after rounding, which this calculator shows.
Do I need to charge VAT on food?
If you're VAT-registered, food and drink served for eating in, and hot takeaway food, are generally standard-rated at 20%. Some cold takeaway food is zero-rated. HMRC's VAT Notice 709/1 covers catering; check anything unusual with your accountant.
Sources
Checked 26 October 2026. This guide is general information, not legal advice.