Break-Even Point Calculator

The break-even point is the minimum revenue your restaurant needs to cover all monthly fixed costs: rent, salaries, insurance, utilities, accounting, marketing, etc. Below that point, the restaurant loses money. Above it, it generates profit. It is the most important figure every restaurateur should know.

Divide monthly fixed costs by the contribution margin per cover. Contribution margin = average ticket − variable costs per cover (food cost + packaging + delivery commissions + waste). The result is the minimum covers per month. Divide by operating days to get the minimum covers per day.

A healthy restaurant operates at least 20% above its break-even point. If you need 40 covers/day to break even, you should serve at least 48. Below 20%, the business is vulnerable to seasonality, surprises, or a bad week.

Rent, salaries and Social Security for permanent staff, insurance, utilities (electricity, water, gas), accounting, POS fees, software licenses, fixed marketing, equipment depreciation. Costs you pay the same whether you serve 10 covers or 100.

You have three levers: (1) increase covers/day with marketing and better online presence, (2) raise average ticket with menu engineering and upselling, (3) reduce fixed costs by renegotiating rent, optimizing staffing, or cutting superfluous expenses. A professional diagnosis identifies which lever is most effective for you.