#753 · Business Tool

Restaurant Break Even Calculator

Use this restaurant break even calculator to find the sales and customer volume needed to cover fixed costs, variable costs, and daily operating targets.

Calculator

Break-even revenue and customers
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days
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How to use this calculator

Enter monthly fixed costs, variable cost percentage, average ticket, operating days, and current revenue. The calculator estimates the revenue and customer volume needed to avoid losses.

What the result means

A large safety cushion means the restaurant can handle a sales drop before losing money. A small cushion means cost or pricing changes may be needed.

Break-even Revenue = Fixed Costs ÷ (1 - Variable Cost %). Customers Needed = Break-even Revenue ÷ Average Ticket.

Variable cost includes costs that rise with sales, such as food, packaging, and some labor depending on your model.

Example calculation

With $30,000 fixed costs and 62% variable cost, contribution margin is 38% and break-even revenue is $78,947.

Tips for better results

  • Lower break-even by reducing fixed costs.
  • Raise contribution margin through menu pricing and cost control.
  • Track daily customers needed instead of only monthly sales.

FAQ

How much revenue does my restaurant need to break even?

Divide fixed costs by contribution margin after variable costs to estimate break-even revenue.

How many customers per day are needed to cover costs?

Divide break-even revenue by average ticket, then divide by operating days.

What is a healthy break-even margin for restaurants?

A healthy restaurant should generate revenue at least 20% above break-even to provide a safety cushion.

How much can restaurant sales fall before losing money?

Revenue drop tolerance equals current revenue minus break-even revenue, divided by current revenue.

How do I lower my restaurant break-even point?

Reduce fixed costs, improve food cost, raise average ticket, or increase contribution margin.

Restaurant decision module

MetricMeaning
Main ResultPrimary operating number for this restaurant decision.
Health Score0 to 100 score based on margin, cost pressure, risk, or growth.
BenchmarkRestaurant management benchmark for quick comparison.
RecommendationAutomatic next step based on the result.

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