Restaurant Break-Even Calculator
Enter your fixed costs and variable cost percentage to see the revenue you need to cover everything — and how many covers a day that takes.
Your numbers
- Enter your fixed costs to calculate the break-even point.
Results
Your break-even point is the sales level where revenue exactly covers all costs and profit is zero. Below it you lose money; above it you start to profit.
How to calculate your break-even point
- Total fixed costs. Add up the costs that don't move with sales — rent, salaried wages, insurance, loan payments — for the month.
- Estimate variable costs. Express food, hourly labor and supplies as a percentage of sales.
- Divide. Break-even revenue = fixed costs ÷ contribution margin (100% − variable cost %).
- Convert to covers. Divide by your average check and operating days to see covers needed per day.
Worked example
Monthly break-even: $20,000 in fixed costs at a 40% variable cost leaves a 60% contribution margin, so break-even is about $33,333 in monthly sales.
Covers per day: At a $30 average check over 26 service days, that's roughly 43 covers a day to break even.
Break-even FAQ
What is a restaurant break-even point?
It is the sales level where total revenue exactly covers fixed and variable costs, so profit is zero. Sales above this point produce profit.
How do I calculate the break-even point?
Divide total fixed costs by the contribution margin ratio, where the contribution margin ratio is 1 minus variable costs as a share of sales.
What is contribution margin?
Contribution margin is the share of each sales dollar left after variable costs, available to cover fixed costs and profit. At a 40% variable cost, the contribution margin is 60%.
What counts as a fixed vs. variable cost?
Fixed costs stay roughly constant regardless of sales — rent, salaries, insurance. Variable costs scale with sales — food, hourly labor, supplies.
How many covers do I need to break even?
Divide your break-even revenue by your average check to get the number of guests, then divide by operating days for a daily target.
How can I lower my break-even point?
Reduce fixed costs, raise your contribution margin by trimming food and labor cost, or increase the average check.
Lower food cost lowers your break-even.
MiseKit finds the money leaking from your kitchen — over-trimming, shrink and write-offs — so more of every sale clears your costs.
See how MiseKit works