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Delivery Profit Calculator

Enter the menu price of an item, your platform commission rate, packaging cost, and food cost. The calculator shows your gross profit per order, profit margin, and effective food cost percentage on delivery - so you can see whether delivery is profitable or subsidised by your dine-in revenue.

Enter menu price, commission rate, packaging cost, and food cost to calculate your delivery profit.
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Results are estimates based on the numbers you enter. Platform commission rates and fee structures vary by contract and change over time. Verify your actual commission rate with your platform agreement. This is not financial advice.

How to use this tool

  1. 1Enter the menu price for the item or average order value - use the price the customer pays, not a discounted platform price.
  2. 2Enter the platform commission rate as a percentage - most major platforms charge 15-30%. Check your contract for the exact rate.
  3. 3Enter your packaging cost per order - bags, containers, seals, and any insulation or cutlery included.
  4. 4Enter your food cost (COGS) for the item or average order.
  5. 5Read the gross profit and margin. If the margin is negative or very low, delivery is destroying value rather than adding it.

Formula used

Delivery revenue = menu price - platform commission (menu price x commission rate). Gross profit = delivery revenue - food cost - packaging cost. Profit margin = gross profit / delivery revenue x 100. Effective food cost % = (food cost + packaging) / delivery revenue x 100.

Example

Pizza: menu price 22, commission 25%, packaging 1.20, food cost 6

Platform takes 5.50, leaving delivery revenue of 16.50. After packaging (1.20) and food cost (6), gross profit is 9.30. Margin is 56.4% on delivery revenue. This appears healthy, but the operator must also ensure their labor cost for packing and the incremental overhead of delivery still leaves room for profit.

Burger: menu price 15, commission 30%, packaging 0.90, food cost 5.50

Platform takes 4.50, leaving 10.50. After packaging and food cost, gross profit is 4.10. Margin is 39%. Before labor and overhead this looks viable, but with a high prime cost the channel may be break-even at best. Raising the delivery price by 2-3 would significantly improve the margin.

Common use cases

  • Auditing whether your delivery pricing covers the platform commission or whether you are subsidising orders
  • Deciding which menu items to promote on delivery platforms based on their actual delivery margin
  • Testing the impact of raising delivery prices by 10-15% to offset commission costs
  • Comparing the profitability of different delivery platforms with different commission rates
  • Explaining to your team why delivery pricing is higher than dine-in pricing

Common mistakes

  • Using the same menu price for delivery and dine-in without accounting for commission - most profitable operators price delivery 15-25% higher.
  • Forgetting packaging cost - premium insulated bags, branded containers, and sealed lids add up to significant cost per order.
  • Not checking what the platform actually charges - commission rates, marketing fees, and payment processing fees vary by contract and platform tier.
  • Ignoring the incremental labor cost of packing delivery orders - especially during peak dine-in times, this is a real cost.

Frequently asked questions

What commission do delivery platforms typically charge?

Most major platforms (UberEats, DoorDash, Deliveroo, Just Eat) charge between 15% and 30% commission on orders. The rate depends on your contract tier, location, and whether you use the platform's own delivery drivers or your own. Many platforms also charge a separate payment processing fee of 2-3%.

Should delivery prices be higher than dine-in prices?

Yes, in most markets this is accepted practice and is permitted by most delivery platforms. A delivery premium of 10-25% is common. The premium offsets the commission, packaging, and the incremental cost of fulfilling a delivery order. Be transparent with customers - most understand that delivery has additional costs.

What is a good profit margin on a delivery order?

After platform commission and packaging, a gross margin of 50-65% on delivery revenue is good. This leaves room to cover labor, overhead, and still generate profit. Below 40%, delivery is marginal and you need to audit your pricing, commission tier, or packaging costs. Negative margin means dine-in is subsidising delivery.

Is this calculator accurate for all platforms?

The calculator works for any delivery platform - enter the commission rate from your specific contract. If your platform charges additional fees (marketing ads, priority placement, payment processing), add these to the commission field for a full picture. Some platforms also charge a monthly subscription instead of per-order commission - divide that by monthly order volume to get an equivalent per-order rate.

How do I calculate the true cost if I use a delivery aggregator?

Aggregators (who list your restaurant on multiple platforms) typically add a layer of commission on top of the platform commission. Enter the combined effective commission rate - your aggregator agreement will show what they charge as a percentage of order value.

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