The minimum selling price determines whether you make a profit or loss. Many food truck entrepreneurs only calculate ingredient costs, but forget fixed costs like fuel, insurance and depreciation. In this article you'll learn step-by-step how to calculate a selling price that covers all costs and generates profit.
What are your total costs?
For a food truck you have three types of costs:
- Variable costs: ingredients, packaging, napkins
- Fixed costs per day: fuel, location rent, insurance
- Fixed costs per month: truck depreciation, maintenance, permits
All these costs need to be recovered through your sales.
💡 Example food truck costs:
Daily fixed costs:
- Fuel: €45
- Location rent: €80
- Insurance (daily portion): €12
- Truck depreciation (daily portion): €35
Total fixed costs per day: €172
The break-even formula
To calculate your minimum selling price, use this formula:
Minimum selling price = (Fixed costs per day ÷ Expected number of portions) + Variable costs per portion + Desired profit per portion
Then add VAT (9% for food).
💡 Example calculation:
You sell an average of 120 portions per day:
- Fixed costs per portion: €172 ÷ 120 = €1.43
- Variable costs (ingredients + packaging): €3.20
- Desired profit per portion: €2.00
Minimum price excl. VAT: €1.43 + €3.20 + €2.00 = €6.63
Minimum price incl. 9% VAT: €6.63 × 1.09 = €7.23
Splitting variable vs. fixed costs
It's crucial to properly split your costs:
- Variable: increases with every portion sold (meat, vegetables, container)
- Fixed: you pay regardless of sales (fuel, location)
The more you sell, the more you spread your fixed costs. That's why volume is so important for food trucks.
⚠️ Watch out:
If you sell significantly fewer portions than expected, your fixed costs per portion become higher. Always build a buffer into your pricing.
Taking seasons and locations into account
Food trucks have varying sales per day. Calculate your average over a week or month:
- Busy days (Friday, Saturday): more volume, lower fixed costs per portion
- Quiet days (Monday, Tuesday): less volume, higher fixed costs per portion
- Seasons: winter often 30-50% less sales than summer
💡 Example weekly planning:
Average portions per week:
- Monday-Thursday: 80 portions/day
- Friday-Saturday: 180 portions/day
- Sunday: 120 portions
Weekly average: (80×4 + 180×2 + 120) ÷ 7 = 120 portions/day
Use this average for your minimum pricing.
Verification: does your calculation check out?
Test your calculation with these checks:
- Are your ingredient costs realistic? (check recent purchase prices)
- Have you included all fixed costs? (small items add up)
- Is your expected volume achievable? (don't be too optimistic)
- Is your final price competitive? (compare with competitors)
A food truck app like KitchenNmbrs helps automatically include all these costs in your cost price calculation, so you always know if you're charging enough.
How do you calculate the minimum selling price? (step by step)
Inventory all fixed costs per day
Add up all costs you incur regardless of how much you sell: fuel, location rent, insurance, truck depreciation, permits (converted per day). Don't forget small items - they add up.
Calculate variable costs per portion
Add up all ingredients for one portion, plus packaging, napkins and cutlery. These are your direct costs per sold portion. Use recent purchase prices.
Estimate your average volume per day
Realistically calculate how many portions you sell on average per day. Include quiet and busy days, plus seasonal effects. Don't be too optimistic.
Calculate fixed costs per portion
Divide your total fixed costs per day by your expected number of portions. This is the amount each portion needs to contribute to your fixed costs.
Add everything up and include VAT
Fixed costs per portion + variable costs + desired profit = price excl. VAT. Multiply by 1.09 for the final price including 9% VAT.
✨ Pro tip
Check your actual volume weekly and adjust your calculation. If you consistently sell more than expected, you can lower your prices to become more competitive.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include VAT in my cost price calculation?
First calculate your minimum price excl. VAT, then add 9% VAT for the final price. VAT is not a cost item, but a pass-through to the Tax Authority.
What if I sell much more or less on some days?
Calculate with your average volume over a longer period (week or month). On busy days you earn more per portion, on quiet days less - it evens out.
How often should I adjust my prices?
Check monthly whether your purchase prices and fixed costs still add up. Fuel prices and location rents can change quickly and affect your margin.
What if my calculated price is too high for the market?
Then you have three options: lower fixed costs (cheaper location), lower variable costs (different supplier), or increase volume through better marketing.
Should I calculate different prices per dish?
Yes, each dish has different ingredient costs. The fixed costs per portion stay the same, but the total minimum price differs per dish.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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