Should I eat out or cook at home?

The Complete Guide to Eating Out vs Cooking at Home

The eternal question: should you spend the time cooking or spend the money eating out? The answer is more nuanced than most people think.

The Real Cost Breakdown

Average Restaurant Meal Costs (per person):

• Fast food: $8-12
• Fast casual (Chipotle, Panera): $12-18
• Casual dining (Applebee’s, Olive Garden): $18-30
• Upscale casual: $30-50
• Fine dining: $60+

Don’t forget to add 20% for tax and tip at sit-down restaurants.

Average Home Cooking Costs (per person):

• Budget meals (rice, beans, basics): $2-4
• Standard meals (protein, sides, vegetables): $5-8
• Quality meals (fresh ingredients, variety): $8-12
• Premium meals (steak, seafood, organic): $12-20

The Hidden Costs of Both Options

Restaurant Hidden Costs:

• Gas/transport to get there
• Parking in some areas
• Beverages (huge markup)
• Appetizers and desserts (temptation)
• Social pressure to match spending

Home Cooking Hidden Costs:

• Grocery shopping time
• Food waste (40% of groceries wasted in average homes)
• Kitchen equipment and supplies
• Utility costs (minimal but real)
• Your time cooking and cleaning

Factoring In Your Time

This is where the calculation gets real. If your time has value, cooking isn’t free.

Time Investment for Home Cooking:

• Meal planning: 30 minutes/week
• Grocery shopping: 60 minutes/week
• Cooking per meal: 30-60 minutes
• Cleanup per meal: 10-20 minutes

For 14 home-cooked meals per week:

• Planning/shopping: 1.5 hours
• Cooking: 7-14 hours
• Cleanup: 2.5-5 hours
• Total: 11-20+ hours/week

If your time is worth $30/hour: That’s $330-600/week in time cost alone.

The True Comparison

Scenario: 14 dinners per week (2 people)

All Restaurants:

• 14 meals × $18 × 2 people = $504/week
• Time: ~3 hours (traveling, waiting)
• Total equivalent cost: $504 + $90 = $594/week

All Home Cooking:

• 14 meals × $6 × 2 people = $168/week
• Time: ~14 hours cooking/shopping
• Time value at $30/hour = $420/week
• Total equivalent cost: $168 + $420 = $588/week

Surprisingly close! The “right” answer depends on your actual time value.

When Eating Out Makes More Sense

High earners with limited time: If you make $75+/hour and can work additional hours, your time cooking is expensive.

When you’re exhausted: Cooking while burnt out leads to poor meals and bad moods. Sometimes paying for convenience is self-care.

Social and business occasions: Restaurants provide experiences. Date nights, client meetings, and celebrations justify the premium.

When you’d waste groceries: Variable schedules make planning hard. If you throw out 30% of groceries, the savings evaporate.

When you hate cooking: If cooking causes genuine stress, the mental health cost matters.

When Home Cooking Makes More Sense

Tight budgets: If cash is tight, your time’s opportunity cost may be low. Cooking saves real money.

Large families: Restaurant meals for 4-5 people are extremely expensive. Home cooking scales efficiently.

Health goals: Restaurant portions are larger and less healthy. Cooking gives you control.

If you enjoy it: Cooking enthusiasts don’t experience it as “lost time.” It’s a hobby.

Working from home: No commute means more cooking time. A lunch break can include real cooking.

The Hybrid Strategy

Most people benefit from a mix:

Optimize for effort, not purity:

• Cook simple meals at home: breakfast, lunch, easy dinners
• Eat out for special occasions and high-effort meals
• Use meal delivery services for convenience without restaurant prices

Batch cooking:

• Spend 2-3 hours on Sunday preparing multiple meals
• Amortizes cooking time across the week
• Makes home cooking feel less daily
• Can reduce home meal time cost significantly

Strategic restaurant choices:

• Fast casual for quick lunches ($12-15)
• Cooking at home for dinners ($6-10)
• Restaurants for social occasions (priceless experiences)

Practical Tips for Either Path

To Make Home Cooking More Efficient:

1. Meal plan on weekends
2. Prep ingredients in batches
3. Use Instant Pot, air fryer, sheet pan meals
4. Keep a well-stocked pantry
5. Embrace “good enough” over perfection

To Make Eating Out More Affordable:

1. Skip drinks (biggest markup)
2. Share appetizers or skip them
3. Lunch specials beat dinner prices
4. Use rewards programs and credit card points
5. Cook breakfast, eat lunch out

The Health Dimension

This often tips the scale toward home cooking:

Restaurant meals average:

• 60% more calories than home meals
• 2x the sodium
• 50% more saturated fat
• Larger portions (1.5-2x recommended)

Health costs of eating out frequently:

• Weight gain over time
• Higher blood pressure
• Increased diabetes risk
• Greater food addiction patterns

These aren’t immediate costs, but they’re real. If you eat out daily, health effects accumulate.

Making Your Decision

Cook at home primarily if:

• You’re on a tight budget
• You have health or diet goals
• You enjoy cooking or want to learn
• You have family members to feed
• You work from home or have time

Eat out primarily if:

• You earn significantly more than cooking “costs”
• Your schedule is unpredictable
• You’d waste groceries otherwise
• You deeply dislike cooking
• Social/business needs require it

For most people: A 60/40 or 70/30 split (home/restaurant) balances savings with convenience and quality of life.

The goal isn’t to optimize every meal—it’s to make intentional choices that fit your life, budget, and values.