How to Calculate Homemade Food COGS Correctly (Complete MBG Menu Example)

Looking for the correct way to calculate homemade food COGS so your business isn’t just selling well—but actually making real profit? In this article, you’ll learn a realistic COGS formula, a complete MBG menu cost calculation example, and how to set a healthy food business profit margin for SMEs, catering services, bakeries, and school meal programs.

This article is perfect for:
• Home-based SMEs
• Catering business owners
• Bakery & snack box sellers
• School MBG menu providers

What Is Homemade Food COGS?

COGS (Cost of Goods Sold) is the total cost required to produce one portion of a product.

Many food business owners only calculate raw ingredients. In reality, that does not reflect the true production cost.

In the food business, COGS must include:

1. Raw material costs
2. Gas & electricity
3. Labor
4. Packaging
5. Equipment depreciation
6. Other small operational costs

Without proper calculation, your margin may look big—when in fact, it’s very thin.

Realistic Formula to Calculate Homemade Food COGS

For SME scale businesses, use this method:

COGS = (Raw Material Cost + 50% Variable Cost) ÷ Total Portions

The additional 50% variable cost is used to estimate:
• Gas
• Electricity
• Water
• Labor
• Production overhead

This model is safer than calculating ingredients alone.

Example: How to Calculate COGS for an MBG Menu

Let’s say the total raw material cost for one recipe is:

Raw materials: Rp100,000
Additional 50% variable cost: Rp50,000
Total production cost: Rp150,000
Total yield: 15 portions

Then:

COGS = Rp150,000 ÷ 15
COGS = Rp10,000 per portion

With this method, you’re already calculating costs realistically.

How to Set a Selling Price with a Safe Profit Margin

After knowing your COGS, use this margin formula:

Selling Price = COGS ÷ (1 – Target Margin%)

Example:
COGS = Rp10,000
Target margin = 30%

Selling price = 10,000 ÷ 0.7 = Rp14,285
Rounded to Rp14,500 or Rp15,000

With this system, you’re no longer guessing your price.

MBG Menu Examples with Healthy Profit Margins

Below is a summary of a complete MBG menu example with calculated COGS and profit margins.

1. Peanut Butter Chicken Stir-Fry

• COGS ± Rp1,335
• Selling price ± Rp2,000
• Margin ± 33%

A high-protein menu suitable for daily catering and frozen food.

2. Peanut Butter Meatballs

• COGS ± Rp1,831
• Selling price ± Rp3,000
• Margin ± 39%

Perfect for office or school lunch packages.

3. Peanut Butter Puff Pastry

• COGS ± Rp1,387
• Selling price ± Rp3,000
• Margin ± 53%

An example of a bakery product with high profit margin potential.

Why SMEs Often Miscalculate Food COGS

1. Ignoring Variable Costs
   Gas and electricity seem small—but they accumulate.
2. Not Calculating Labor
   Even if you run the business yourself, your time has value.
3. No Portion Standardization
   Without standardized gram measurements, costs become inconsistent.
4. Pricing Based on Competitors
   Your price should be based on COGS—not imitation.

The Difference Between Regular SMEs and Professional Food Businesses

If you want to enter the school or institutional market, documentation and nutritional analysis become crucial.

FAQ About How to Calculate Homemade Food COGS

Q1: Should COGS include gas and electricity?
Yes. Operational costs must be included for realistic margins.

Q2: What is the ideal profit margin for a food business?
Generally 30–50%, depending on product type and market segmentation.

Q3: Does an MBG menu require nutritional analysis?
For B2B markets such as schools and institutions, it is highly recommended.

Q4: How often should COGS be recalculated?
At least every 3 months, or whenever ingredient prices increase significantly.

Get a Complete COGS Example + Nutritional Analysis Table

If you want access to:
✔ Detailed cost breakdown per ingredient
✔ Complete COGS calculations
✔ Realistic margin per menu
✔ Laboratory test results table (10 parameters)
✔ Client-ready format

👉 Fill out the form to get the complete information.

Recommended Article for You:

• Complete MBG Menu Examples with Cost of Goods Sold (COGS) and Nutritional Analysis (Ready for SMEs & Catering Businesses)

Recommended Product for You:

• Croner Peanut Butter
• Unclely Puff Pastry