The markup factor (Kalkulationsfaktor) is the number by which the cost of goods of a dish or drink is multiplied to arrive at the gross selling price. It is the short form of the surcharge calculation: instead of adding overheads, labour, profit and VAT individually, the factor bundles everything into one multiplier — kitchens typically use factors around 3.5 to 4.5, beverages considerably more.
The "right" factor is not a matter of belief but follows from your target cost-of-goods ratio: aiming for 30% net requires, at 19% VAT, a factor of 1 ÷ 0.30 × 1.19 ≈ 3.97. Hence the old hospitality rule of thumb "times four".
Enter cost of goods and factor — price and KPIs update instantly.
Round the calculated price to market conventions (€23.20 → €23.90 or €22.90) and check it against competition and willingness to pay — the factor gives the floor, not the market price.
| Category | Typical factor | Note |
|---|---|---|
| Food (kitchen) | 3.5 – 4.5 | depending on labour intensity and concept |
| Open beverages (wine, beer) | 4 – 6 | bottled wine often lower (factor 2.5–3.5) |
| Hot drinks & soft drinks | 5 – 10 | low cost of goods, high margin |
| Cocktails | 4 – 6 | factor in labour time! |
Calculate backwards: set the target cost-of-goods ratio (from your P&L/industry benchmarks), factor = 1 ÷ ratio × (1 + VAT rate). At a 32% ratio and 19% VAT that gives ≈ 3.7.
The classic hospitality factor calculates from net cost of goods to the gross selling price (incl. VAT). Consistency is what matters — if you calculate net, add VAT separately.
Implicitly yes — the factor must cover all costs beyond the goods plus profit. That is why labour-intensive concepts need higher factors than self-service.