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Contribution margin calculation

The contribution calculator will help you to calculate your sales and contribution for your food and drinks.

Contribution Margin Calculation

To open the Coverage Contribution Calculator, click on "Open Coverage Calculation" in the recipe (Edit mode) above the list of ingredients.

Below list of ingredients, the cover fee calculator appears.

COGS per Ingredient

In addition, a cost field is shown next to the ingredient. When a price for the ingredient is deposited, € 0.00 appears in the cost field.

If you now enter an amount of goods, cost of goods sold will be automatically calculated.

If there is no price for the ingredient the cost field is framed in red. If this is the case, you can deposit a price yourself. 

Save and change prices

To change a price or to enter a price, click on the currency symbol (€) in the cost field (COGS field).

An additional field opens in which you can enter the quantity and the price net. In the following example, the basic price for a 10kg bag of salt is € 15.00.

Turn the price on active to use it for calculation in the recipe.

Contribution Margin Calculation / Cost of goods sold (COGS)

The Calculator offers you the possibility to know exactly your COGS and efficiently adjust the selling price. There are two columns (green and yellow).

  • The green column represents the current values.
  • The yellow column can be used to optimize the ratio of costs and price.

The calculation will be made  in both directions - eg. you can adapt the COGS in%, the selling price or the tax rate and the surcharge, and the other values are automatically calculated. 

  • Sum of serving = the value of all the items per serving
  • Surcharge = The surcharge that you want to add up to the serving (will be calculated automatically if you already have set a price for the dish.
  • Price per serving net = Calculated selling price per serving without tax.
  • VAT = Tax depending on your country and a default can be edited in the settings
  • Actual gross / serving = Real gross selling price per serving - price on the menu
    • If you change the price / portion gross in the green column, the price will be adjusted accordingly. 
  • Actual cost of sales in % = COGS in % related to the sales price

As a rule, the COGS should be between 20% and 30%. Depending on the business model, the ingredients used, the fixed costs, etc., this value may fluctuate from factory to factory and should be calculated for your company in a tailor-made manner.

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