# Restaurant Gross Margin Calculator

> Calculate a restaurant’s gross profit and gross margin from food and beverage sales and their cost of sales, with separate food and drinks margins.

Category: Food & hospitality · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/restaurant-gross-margin-calculator

Gross margin is the share of sales left after paying for the food and drink that was sold. Food and beverages are shown separately because their margins usually differ a lot.

Also called: F&B gross profit calculator, Restaurant GP calculator.

## Inputs
- Food sales (default 60000)
- Beverage sales (default 20000)
- Food cost of sales (default 18000)
- Beverage cost of sales (default 5000)
- Currency

## Results
- Gross margin
- Gross profit
- Combined cost of sales
- Food gross margin
- Beverage gross margin

## Formula

```
Gross profit = (Food sales + Beverage sales) − (Food cost + Beverage cost);  Gross margin = Gross profit ÷ Total sales × 100
```

Where:
- Sales: revenue excluding sales tax
- Cost of sales: cost of the food or drink consumed, ideally from stock counts

## Worked example
1. Total sales = 60,000 + 20,000 = 80,000; total cost = 18,000 + 5,000 = 23,000.
2. Gross profit = 80,000 − 23,000 = 57,000, and 57,000 ÷ 80,000 = 71.25%.
3. Food: (60,000 − 18,000) ÷ 60,000 = 70%. Drinks: (20,000 − 5,000) ÷ 20,000 = 75%.

**Result:** The restaurant keeps 71.25% of sales as gross profit: 70% on food and 75% on drinks.

## What the result means

Gross margin only covers ingredients. Labour, rent and other overheads still have to come out of it, so track it alongside prime cost (cost of sales plus labour). A shift in sales mix towards drinks raises the overall margin even if neither margin changes.

## Assumptions and limits
- Cost of sales covers only food and drink consumed; labour is excluded.
- This is not net profit.

## Questions

### Is gross margin the same as 100% minus food cost %?

For food alone, yes: a 30% food cost leaves a 70% gross margin. With drinks included, the combined margin is weighted by each category’s sales.

### Why are drinks margins usually higher?

Drinks often need less preparation and have lower ingredient cost relative to price, but this varies by product and venue.

## Related calculators
- [Food Cost Percentage Calculator](https://calculators.geekmidst.com/calculators/restaurant-food-cost-percentage-calculator)
- [Restaurant Break-even Covers Calculator](https://calculators.geekmidst.com/calculators/restaurant-break-even-covers-calculator)
- [Profit Margin Calculator](https://calculators.geekmidst.com/calculators/profit-margin-calculator)

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/restaurant-gross-margin-calculator