What This Calculator Does
The Eating Out vs Cooking at Home Savings Calculator shows how much money you can keep in your pocket by preparing meals yourself instead of dining out or ordering takeout. It compares the average price of a restaurant meal with what the same meal costs to cook at home, then multiplies the difference by how often you eat that meal in a month.
How to Use It
Enter three numbers: the average cost of one meal when eating out, the average cost of cooking that meal at home (ingredients per serving), and how many such meals you have in a typical month. The calculator instantly returns your savings per meal, per month, and projected over a full year.
The Formula Explained
The math is simple: $$\text{Monthly Savings} = \left(\text{Restaurant Cost} - \text{Home Cost}\right) \times \text{Meals per Month}$$ The term in parentheses is your savings per meal. Multiply by the number of meals to get a monthly figure, then by 12 for an annual estimate. If the home cost is higher than the restaurant cost (rare, but possible for cheap fast food), the result will be negative — meaning eating out is actually cheaper.
Worked Example
Suppose a restaurant lunch costs $15, while cooking the same lunch at home costs $5 per serving, and you eat 20 such meals a month. Savings per meal = \(\$15 - \$5 = \$10\). Monthly savings = $$\$10 \times 20 = \$200$$ Over a year that is $$\$200 \times 12 = \$2{,}400$$ — enough for a vacation just by changing where you eat.
FAQ
Should I include drinks and tips? For the most accurate comparison, add tax, tip, and drinks into the restaurant cost figure, since those are real out-of-pocket expenses.
How do I estimate the home cost? Add up the price of ingredients for a recipe and divide by the number of servings it produces. Don't forget pantry staples used in small amounts.
Does this account for my time? No — it only compares direct money cost. Cooking takes time, so weigh the dollar savings against the hours spent shopping and preparing food.
