#2362 · Food & Hospitality Tool

Restaurant Kitchen Occupancy Break-Even Calculator

Estimate the sales volume your restaurant kitchen needs to cover location-related and other fixed costs. The calculator converts a variable cost rate into a contribution margin, then reports break-even revenue and the approximate number of orders required at your average sale. Enter monthly values for a monthly target or weekly values for a weekly target; every money input must use the same period.

Calculator

Operating period inputs
USD
USD
%
USD

How to use this calculator

  1. Choose one reporting period and collect all inputs for that same period.
  2. Enter the operating figures without sales tax or duplicated expenses.
  3. Select Calculate and review the main result with the supporting measures.
  4. Save the inputs with the period so later comparisons use the same definitions.

Formula

Break-even sales = (occupancy/site cost + other fixed costs) ÷ (1 − variable cost rate)

Break-even orders are break-even sales divided by average order value, rounded up to the next whole order.

What the result means

Break-even sales are the revenue required for contribution margin to cover the selected fixed costs. Earnings are approximately zero at this point before costs omitted from the inputs.

This is an operating estimate. Accounting classifications and local practices may differ.

Example calculation

With $3,000 in site costs, $2,000 in other fixed costs, a 40% variable cost rate, and a $20 average order, break-even sales are $8,333.33. That is 417 whole orders.

Tips for better results

  • Compare like-for-like days, shifts, or accounting periods.
  • Document which expenses and sales channels are included.
  • Review unusual results against source reports before changing operations.
  • Track the measure over time instead of relying on one isolated result.
  • Pair the result with customer experience and quality observations.

Frequently asked questions

What belongs in occupancy and site cost?

Use costs tied to having the location or operating spot, such as rent, parking, commissary allocation, or site fees, according to your accounting method.

How do I calculate the variable cost rate?

Divide costs that rise with sales—such as ingredients, packaging, and transaction fees—by sales for a representative period.

Can fixed payroll be entered in other fixed costs?

Yes, if that payroll does not change with order volume and is not already included elsewhere.

Why must the variable cost rate stay below 100%?

At 100% or more, each sale contributes nothing toward fixed costs, so a finite break-even sales figure does not exist.

Why are break-even orders rounded up?

A partial order cannot normally be sold, so the count is rounded up to the first whole order that reaches the target.

Break-even model inputs

VariableMeaning
Fixed costsSite cost plus other fixed expenses
Contribution margin100% minus variable cost rate
Average saleRevenue per completed order

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