Menu price calculator UK: compare prices before changing your menu

Work out a starting selling price

Take a portion cost of £4.20, an illustrative target GP of 70% and an assumed sales VAT rate of 20%. The required sale before VAT is £4.20 ÷ (1 − 0.70) = £14. Adding the assumed VAT gives a customer price of £16.80. A 70% target is an example, not a recommendation.

Compare the prices customers will actually see

At a customer price of £16.50 with the same assumed 20% VAT, net sales are £13.75 and GP is £9.55: 69.45% margin. At £16.95, net sales are £14.125 and GP is £9.925: 70.27% margin. These differences come from the actual penny prices, not the unrounded starting calculation.

Reproduce the comparison in the calculator

Choose Find selling price and enter cost 4.20, target 70 and VAT 20. In What if I charge, enter 16.50, 16.80 and 16.95 as candidate prices. Compare GP pounds as well as margin. The per-100 comparison holds sales volume constant; it cannot tell you which price customers will accept.

Check costs before changing the menu

Use a cost per sellable portion, including the packaging and direct costs you have chosen to measure. Avoid counting the same waste twice. If costs are uncertain, price the recipe again before relying on a target. Supplier price changes, portion sizes and unsold batches can all change the result.

Save the decision and revisit it

Save the dish and selected calculation in My menu, then export a backup before switching browsers or devices. Local storage does not synchronise between devices. Review customer response and remaining business expenses alongside GP. The tool gives arithmetic for your assumptions; it does not recommend a market price or forecast net profit.

Sources and VAT guidance

• HMRC: catering and takeaway food
• HMRC: reclaiming VAT on business expenses