Examining the Price of Eating at Home vs Eating Out

Americans are spending more money eating out than they do on groceries. According to U.S. Department of Agriculture (USDA) data, in 2025, 56.3% of total food expenditures went toward food away from home, and the remaining 43.7% went toward food at home.

These expenses can be tweaked if you want to stick to a budget. While cooking meals at home can be time-consuming, there are ways to make the process easier. And when you do eat out, there are a few simple steps you can take to save money.

Cooking at Home vs Eating Out: How They Stack Up

The pros and cons of eating at home vs. eating out have long been debated. As you’re deciding between the two, here are some factors to consider.

Is It More Expensive to Eat Out?

Because of inflation, grocery prices have been on the rise over the past year, though not as much as the price of eating out. According to USDA data for 2025, the cost of food at home rose 2.3%, while the cost of food away from home rose 3.8%. That percentage for food at home is a bit below the 20-year historical average figure, while the change for food away from home outpaced the historical average. That means dining out may drain your checking account more quickly than eating at home would.

And, naturally, eating out can involve additional charges vs. eating at home. You might have to pay for parking or transportation to the restaurant, you may order a pricey cocktail (or pay for bottled water), and you will likely leave a tip as well. These can be reasons why eating at home can cost around $4-$6 per person, while dining out can cost around $23 or significantly more per person.

Is it Healthier to Eat at Home?

When you cook at home, you can control what goes into each dish. You can easily make adjustments such as reducing the amount of butter in a recipe or using milk instead of cream.

And if you have any dietary restrictions or allergies, you don’t have to worry about consuming something you shouldn’t when you cook for yourself.

Research has shown that cooking at home typically leads to healthier choices. Generally, the more people cook at home, the healthier their diet, and the fewer calories they consume.

It can also be financially healthy to eat at home. For instance, you can cook with ingredients you have on hand or design your menu around what’s on sale at the supermarket. These moves can help you save on groceries.

How Much Time Will It Take to Cook at Home?

There’s no way around it — cooking can be time-consuming. But it also takes time to go out to eat or pick up a takeout order.

If you’re trying to do more cooking, don’t overextend yourself straight away. If you’re used to dining out several nights a week, pick one or two nights to make dinner at home. You can gradually increase the frequency to three nights a week or more.

Cooking is like any other skill. The more you do it, the better you’ll get. Find some go-to recipes that are easy to prepare and affordable. For instance, sheet pan dinners can be great for those with a hectic schedule. Stock your pantry with the essentials so you’ll have all the staples you need on hand. (Tip: Shopping at wholesale clubs can reduce the cost of those staples.)

Over time, you’ll become more comfortable in the kitchen, and what used to take you a half hour to do will take just minutes. Plus, you’ll be rewarded with a delicious meal you made yourself. Now you’ve maximized your time and money!

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Tips for Saving Money While Dining Out

Going to your favorite restaurant is one of life’s little pleasures. And you don’t have to give it up. There are a few ways to curb your spending and manage your money while still enjoying a great meal. Here are some simple strategies that could help reduce your bill.

1. Not Ordering a Drink

Skip the drinks the next time you want to cut down on your restaurant tab. Restaurants tend to substantially mark up the prices of drinks. They may charge two to three times the cost of a bottle of craft beer, for instance.

Or, if you want to treat yourself to a drink, spend wisely by sticking to just one and really savor it.

2. Skipping Dessert

Much of the markup on desserts is based on labor costs. A talented, creative pastry chef can be expensive to keep on staff. As a result, many high-volume casual restaurants outsource their desserts.

One creative way to save money is to have dinner out and then eat dessert at home.

3. Sharing a Meal

Portion sizes at restaurants tend to be oversized. Share a salad and an entree with your dining mate to cut costs and calories. (You can use a peer-to-peer transfer app to split the bill.)

If your friend or family isn’t interested in sharing, save half of your meal for lunch or dinner the next day.

4. Go During Happy Hour

Instead of meeting friends for dinner, join them for happy hour instead. You can catch up over drinks and an appetizer or two while enjoying discounted happy hour prices. You’ll get the experience of eating out but pay less for it. You can put the money you save in your bank account.

5. Ordering an Appetizer as Your Meal

Instead of a full entree, order from the appetizer menu instead. These items typically cost less and may come in smaller portion sizes, too.

6. Limiting the Number of Times You Eat Out

If you go to restaurants often, you could start to cut back. For example, you can decide to eat out just once or twice a week. Not only will that make it feel more special, but you can savor every bite without blowing your budget.

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The Takeaway

Eating out can be expensive, but there are ways to trim costs so you can enjoy your food without stressing over the bill. For instance, skipping extras like dessert can keep the price down. And eating at home a little more often could help you save money, and it may be healthier as well. With a bit of effort, you can likely hold on to more of your cash when it comes to food expenses.

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FAQ

Is it more expensive to eat out than to cook at home?

Yes, eating out is typically more expensive, often costing $15 or more per person compared to $4-$6 for a home-cooked meal. Additionally, dining out can become even pricier if you take into account extra costs such as tips, transportation, and significant markups on beverages.

Is cooking at home healthier than eating at restaurants?

Cooking at home allows you to control the ingredients you use, making it easier to reduce fats and accommodate specific dietary restrictions or allergies. Research has shown that cooking at home often leads to healthier dietary choices and lower overall calorie consumption.

What are some simple ways to save money when eating at a restaurant?

You can reduce your bill by skipping expensive drinks and desserts, sharing a meal with a companion, or ordering from the appetizer menu instead of having a full entree. Limiting how often you dine out or taking advantage of happy hour specials are also effective strategies to curb spending.

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