Restaurant Break Even Calculator

Estimate your restaurant’s break-even point quickly to understand when you’ll start making a profit.

This free tool is built by Connecteam, the platform for managing your team.

How to Use Our Free Restaurant Break-Even Point Calculator

Enter your fixed costs: Toggle the switch to enter your total monthly expenses, or leave it off to enter individual fixed costs like rent and salaries.
Add variable costs: Input the percentage of your sales that go toward food, hourly labor, and other variable expenses.
Set average spend: Enter the average amount each guest spends at your restaurant.
Calculate your target: Click “Calculate” to see how many guests you need each day to cover your costs.

Restaurant Break-Even Calculator

I know my monthly expenses

A. Fixed Costs

Monthly Expenses ($)

Rent ($)

Insurance ($)

Property Tax ($)

Phone & Internet ($)

Marketing ($)

Licenses & Permits ($)

Utilities ($)

Salaries ($)

Other Fixed Costs ($)

B. Variable Costs

Food (%)

Labor (%)

Other (%)

Avg $ Per Guest

Break-Even Results

Avg $ Per Guest $0

Monthly Expenses $0

Daily Expenses $0

Guests to Break Even (30 Days) 0

Daily Guests to Break Even 0

Profit at 0 daily guests $0

Break-Even Analysis: The break-even point is the number of guests you need to serve to cover all costs (fixed and variable). In this calculation, we assume a 30-day period to determine the daily profit or loss if your sales exceed or fall short of the break-even point.

How to Calculate a Restaurant Break-Even Point

Running a restaurant is a balancing act between offering great food and managing your finances. One of the most important numbers to know is your break-even point (BEP), or the point where your restaurant’s revenue covers its costs. After you hit this point, every dollar you earn is profit.

What Is the Break-Even Point?

The break-even point is the moment when your restaurant’s sales cover all of its expenses. It means you’re no longer losing money, but you’re not yet making a profit either. Knowing this number helps you understand how much money you need to bring in just to keep things running smoothly.

Key Terms You Need to Know

Before we dive into the calculation, let’s cover a few basic terms:

Fixed Costs: These are the expenses that stay the same no matter how much you sell. Common fixed costs include rent, insurance, and salaries.
Variable Costs: These change depending on how much you sell. In a restaurant, this includes the cost of ingredients, supplies, and utilities.
Total Revenue: The money your restaurant makes from sales.
Contribution Margin: The amount of money left over after subtracting variable costs from your sales. This helps cover fixed costs and, eventually, profit.

The Break-Even Formula

To calculate your restaurant’s break-even point, use this simple formula:

Break-Even Point =

Fixed Costs

Contribution Margin per Unit

Let’s break it down:

First, find your contribution margin by subtracting your variable costs from your menu price. For example, if a dish costs $20 and the ingredients cost $8, your contribution margin is $12. Then, divide your total fixed costs by that contribution margin. If your fixed costs are $10,000 per month, you divide $10,000 by $12, which equals 834. This means you need to sell 834 dishes in a month to break even.

Control Your Costs with Connecteam

Knowing your break-even point is important, but actually hitting those numbers means keeping your labor costs in check. Connecteam helps you control your biggest expense with an employee scheduling and time-tracking app built for restaurants. You can build schedules that align with your budget, prevent early clock-ins with geofencing, and get real-time alerts when staff approach overtime. Try Connecteam for free today!

FAQs

What is a restaurant break-even point calculator?

A restaurant break-even point calculator is a handy tool that helps you figure out the exact moment when your restaurant starts making a profit. It calculates how much revenue you need to cover all your costs—both fixed (like rent) and variable (like food supplies)—so you know when you’re in the green.

How do I use a break-even calculator for my restaurant?

Using a break-even calculator is easy! You just plug in your restaurant’s fixed costs, variable costs, and the price of your dishes. The calculator does the math and tells you how many meals or drinks you need to sell to cover your costs and start earning profits.

Why is knowing my break-even point important for my restaurant?

Understanding your break-even point is crucial because it gives you a clear target to aim for. Knowing exactly how much you need to sell can help you set realistic goals, plan for growth, and avoid financial surprises. Plus, it helps you price your menu in a way that ensures profitability.

Can a break-even calculator help with planning for slow seasons?

Absolutely! By knowing your break-even point, you can anticipate how much you need to sell during busier times to cover any slow periods. It’s a great way to stay ahead and ensure you’re prepared to weather any seasonal dips in sales.

What costs should I include in the break-even calculator?

You’ll need to include both fixed costs (like rent, salaries, and utilities) and variable costs (like food ingredients and drink supplies). This way, the calculator gives you a complete picture of what you need to sell to break even and then start making a profit.