#747 · Business Tool

Restaurant Profit Calculator

Calculate restaurant monthly profit, profit margin, prime cost, and break-even revenue from sales, food cost, labor, rent, utilities, and other expenses.

Calculator

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How to use this calculator

  • Enter monthly restaurant revenue.
  • Add food, labor, rent, utilities, and other operating expenses.
  • Review profit margin and prime cost to identify the biggest cost pressure.

What the result means

The result shows whether the restaurant is profitable after core operating costs. Prime cost is especially important because food and labor usually drive restaurant profitability.

Profit = Revenue - Total Expenses. Profit Margin = Profit / Revenue × 100. Prime Cost = Food Cost + Labor Cost.

Strong revenue does not guarantee profit if food waste, labor scheduling, or occupancy costs are too high.

Example calculation

A restaurant with $80,000 monthly revenue and $63,000 in total expenses earns $17,000 profit, a 21.25% profit margin.

Tips for better results

  • Track food cost percentage weekly, not only monthly.
  • Schedule labor based on daypart demand.
  • Review menu contribution margin and remove low-profit items.

FAQ

What profit margin should a restaurant make?

Restaurant profit margins vary, but consistent positive net margin with controlled food and labor costs is the key target.

How much profit does a restaurant earn monthly?

Monthly profit equals revenue minus food, labor, rent, utilities, and other expenses. This calculator estimates that figure and margin.

What is a good prime cost percentage?

Prime cost is food cost plus labor cost. Many operators try to keep it near or below 60 percent of revenue.

How do I increase restaurant profit?

Improve menu pricing, reduce waste, optimize labor scheduling, raise average ticket size, and monitor supplier costs.

What restaurant costs should I reduce first?

Food waste, labor inefficiency, and high-cost low-margin menu items are often the first places to review.

Restaurant Profit Metrics

MetricMeaning
Net ProfitRevenue left after expenses
Profit MarginProfit as a percentage of revenue
Prime CostFood plus labor cost
Break-even RevenueRevenue needed to cover costs

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