Costing a recipe - Step-by-step calculation of ingredient and per-serving costs

Sep 2, 2026

Upload by Levi

Recipe costing explains why a recipe’s true cost must be calculated from the ingredients actually used, not the amounts purchased. It guides creation of a costing chart with columns for purchased quantity, needed quantity, and resulting ingredient cost, then shows how to source ingredient prices and account for differences in pack sizes. Worked examples calculate total cost of purchased ingredients, cost of ingredients used, and final cost per serving by dividing recipe total by servings.

LanguageEnglish

CategoryPresentations

FormatPPTX

Pages11

Reading Time4 min

AccessFree to download

Why cost a recipe?

Amount purchased vs amount used

Step 1: Create a costing chart

Required headings

Step 2: Find out the cost

Price sources and considerations

Step 3: Add ingredient details

Step 4: Calculate cost of purchase

Step 5: Calculate cost of ingredients used

Step 6: Calculate cost per serving

Costing a recipe Why cost a recipe? Know the cost of a recipe before it is made. Calculate the cost of the ingredients used, not the ingredients purchased. Compare the difference in cost of changing ingredients in a recipe on the total cost. Calculate the cost per portion. Amount purchased v amount used The amount of an ingredient purchased will most likely be different to the amount that is required by a recipe. For example: butter is purchased in 250g ‘blocks’, but the recipe may only need 50g; milk is sold in litres (pints), but the recipe may only need 100ml; apples may be sold in bags of six, but the recipe may only need two. Therefore there is a difference in the cost of the ingredients purchased compared to the cost of the ingredients used by a recipe. Step 1: Create a costing chart Create a costing chart, or use a template. The chart will need the following headings: Ingredient name Cost of quantity purchased (£) Quantity purchased Quantity needed in recipe Cost of ingredient used in recipe (£) Step 2: Find out the cost Find out the cost of the ingredients. This might be through looking at the receipt or by using one of the following websites: www.asda.com www.morrisons.co.uk www.mysupermarket.co.uk www.ocado.com/ www.sainsburys.co.uk www.shop.coop.co.uk www.tesco.com www.waitrose.com Consideration The cost of ingredients may be different in supermarkets, local shops, farm stores and markets. Brands of the same ingredient may have different costs. In addition, costs can change during the year, e.g. due to season, demand, crop failure. Step 3: Add ingredient details Add the details to the chart: ingredient name; cost of amount purchased; quantity purchased (gram, litre, unit); quantity needed in the recipe (grams, litre, unit). Ingredient name Cost of quantity purchased (£) Quantity purchased Quantity needed in recipe Cost of ingredient used in recipe (£) Butter £1.50 250g 25g Milk £0.98 1000ml 100ml Eggs £1.20 6 2 Mixed herbs £1.45 11g 2g Step 4: Calculate cost of purchase Calculate the cost of purchasing all the ingredients. Add up the ‘Cost of quantity purchased’ column. This is the total amount spent on the ingredients – but not what is used in the recipe. Ingredient name Cost of quantity purchased (£) Quantity purchased Quantity needed in recipe Cost of ingredient used in recipe (£) Butter £1.50 250g 25g Milk £0.98 1000ml 100ml Eggs £1.20 6 2 Mixed herbs £1.45 11g 2g £5.13 Step 5: Calculate cost of ingredients used To calculate the cost of ingredient used, for each ingredient: divide the ‘Cost of quantity purchased’ by the ‘Quantity purchased’; then multiple by ‘Quantity needed in recipe’. Ingredient name Cost of quantity purchased (£) Quantity purchased Quantity needed in recipe Cost of ingredient used in recipe (£) Butter £1.50 250g 25g £1.50 250g 25g ÷ x = £0.15 £0.15 Note: Cost figures are rounded up/down. Step 5: Calculate cost of ingredients used Finally, add up the ‘Cost of ingredient used in recipe’ column – this will give the total for the recipe. In this example, it is £0.91. Ingredient name Quantity purchased Cost of quantity purchased (£) Quantity needed in recipe Cost of ingredient used in recipe (£) Butter 250g £1.50 25g £0.15 Milk 1000ml £0.98 100ml £0.10 Eggs 6 £1.20 2 £0.40 Mixed herbs 11g £1.45 2g £0.26 £5.13 £0.91 Note: Cost figures are rounded up/down. Step 6: Calculate cost per serving The cost per serving is calculated by: dividing the total cost of the ‘Cost of ingredient used in recipe’ by the number of servings. For example, if the recipe served 3 people: £0.91 ÷ 3 = £0.30 each Ingredient name Quantity purchased Cost of quantity purchased (£) Quantity needed in recipe Cost of ingredient used in recipe (£) Butter 250g £1.50 25g £0.15 Milk 1000ml £0.98 100ml £0.10 Eggs 6 £1.20 2 £0.40 Mixed herbs 11g £1.45 2g £0.26 £5.13 £0.91 Note: Cost figures are rounded up/down. Costing a recipe For further information, go to: www.foodafactoflife.org.uk This resource meets the Guidelines for producers and

FAQs

Why calculate the cost of a recipe before it is made?

To know the total cost based on what will actually be used. It helps estimate expenses accurately before producing the recipe.

How do you account for the difference between purchased amounts and recipe needs?

Compare the quantity required by the recipe with the quantity in the purchased unit. Convert using the ratio of needed quantity to purchased quantity to determine the real ingredient cost.

What method is used to calculate the cost of ingredients used?

For each ingredient, divide the purchase cost by the quantity purchased, then multiply by the quantity needed in the recipe. Round cost figures appropriately as noted.

Sep 2, 2026

Upload by Levi