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We all have first-hand knowledge of how expensive groceries have gotten. But if you’re trying to save money, is it still more budget-friendly to eat at home?

It’s an interesting question, given that grocery prices have actually gone up twice as fast as menu prices the past two months, according to the Consumer Price Index. That’s a flip on the usual script, since restaurant prices tend to rise faster than grocery prices, reflecting the labor costs that go into food preparation and service. At the moment, however, the impact of new tariffs on imports seems to be most visible in the supermarket data.

But, yes, preparing your own food is still the more affordable option — and can save you a lot.

The cost of an average meal for one adult male eating at home runs $3.40 to $5.19, according to the latest USDA food-cost tables. The average restaurant meal, on the other hand, probably costs at least twice that if you go the fast-food route, and could easily run you $30 to $50, depending on where you go and what you order.

Think of a family of four who eats out twice a week. If they’re spending $5 per person to eat at home, that’s $20 per meal. But if they’re spending $20 per person to eat out, that’s $80 a meal — a $60 difference. That means forgoing one dinner out a week could save about $260 a month, or over $3,100 a year.

So what? Food overall — at home and out — is Americans’ third largest expense, behind only housing and transportation. But in an economy where so many costs feel out of our control, where we eat can have a big impact on our bottom line.

At the end of the day, regardless of whether grocery inflation is outpacing restaurant inflation, there’s a big cost difference. (And it’s worth noting that taking a longer view, grocery prices rose 2.7% in the 12 months through September, less than the 3.7% increase in restaurant prices.)

Preparing your own meals remains one of the best ways to cut costs month in and month out. To help ease your burden at the supermarket, shop store brands, explore vegetarian options to avoid pricey meat (we’re looking at you, beef,) and look for new ways to stretch leftovers and reduce food waste.

Related Reading

Grocery Inflation Hacks: How to Fill Your Fridge for Less (SoFi)

How to Eat Healthy on a Budget: 17 Tips (NerdWallet)

26 Tips to Spend Less When You Dine Out at Restaurants (The Penny Hoarder)

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