Break-even calculator for a restaurant
With $15,000 of fixed costs a month, a price of $22.00 and $8.00 of cost per sale, you break even at 1,072 sales a month ($23,584 of revenue).
Free, runs in your browser, nothing is sent anywhere. Move the sliders to try your own numbers.
The numbers for these inputs
| Sales | Revenue | Total cost | Profit |
|---|---|---|---|
| 0 | $0 | $15,000 | -$15,000 |
| 215 | $4,730 | $16,720 | -$11,990 |
| 430 | $9,460 | $18,440 | -$8,980 |
| 645 | $14,190 | $20,160 | -$5,970 |
| 860 | $18,920 | $21,880 | -$2,960 |
| 1,075 | $23,650 | $23,600 | $50 |
| 1,290 | $28,380 | $25,320 | $3,060 |
| 1,505 | $33,110 | $27,040 | $6,070 |
| 1,720 | $37,840 | $28,760 | $9,080 |
| 1,935 | $42,570 | $30,480 | $12,090 |
How it works
Every sale leaves a margin: the price minus the variable cost of making and delivering it. Fixed costs (rent, software, salaries) do not change with sales, so you break even when margin x number of sales equals fixed costs.
Break-even sales = fixed costs / (price - variable cost), rounded up to a whole sale. Below that number you lose money; above it, every extra sale adds one margin to profit.
The chart shows revenue and total cost as lines; they cross at the break-even point. The table lists sales, revenue, total cost and profit around it.
Common mistakes
- Leaving out your own pay: if the business must also pay you, add it to the fixed costs.
- Treating a cost that grows with sales (payment fees, packaging, shipping) as fixed.
- Using the list price when most sales are discounted.
- Assuming demand: break-even tells you the target, not whether customers will buy that many.
Questions
How many sales do I need to break even?
1,072 a month, or $23,584 of revenue, with the numbers above.
What is my margin on each sale?
$14.00, which is 63.64% of the price.
What happens if I raise the price?
Each extra $1 of price adds $1 of margin per sale and lowers the break-even number. Move the price slider to see how fast it falls.
Which costs are fixed and which are variable?
Fixed: rent, subscriptions, salaries, insurance. Variable: ingredients, materials, packaging, shipping and payment fees, which grow with each sale.
Does break-even include tax?
No. It is before tax and before any pay you take from the business.
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