Restaurant Break-Even Calculator
Calculate your break-even point in minutes. Manage costs and track your path to profitability with ease.
Find Your Break-Even Point in Minutes
Whether you're running a cozy bistro or a chain of quick-service locations, knowing your break-even helps you confidently plan for growth.
Our Restaurant Break-Even Calculator shows you exactly how much revenue you need to cover your costs and start making money.
Whether you're just starting out or are looking to improve your margins, knowing your break-even point gives you the clarity to make smarter decisions for your restaurant. A key part of that strategy is effectively managing your Cost of Goods Sold (COGS). Learn more about Measuring Cost of Goods Sold (COGS) in Restaurants for Maximum Profitability to take your cost control efforts to the next level.
What is the Break-Even Point?
The break-even point is the moment where your revenue matches your expenses—no profit, no loss. Once you pass this point, every dollar of sales brings you closer to real profit. Understanding your break-even point is key to managing pricing, costs, and growth effectively.
How Does the Break-Even Calculator Work?
Our Break-Even Point Calculator factors in your restaurant’s fixed and variable costs to give you a clear snapshot of how much you need to sell to cover expenses. Here’s how it works:
Fixed Costs:
These are your monthly expenses that stay the same regardless of how many customers walk through the door. Think rent, utilities, insurance, and salaries.
Variable Costs:
These fluctuate based on your sales volume, such as food costs, labor for kitchen staff, and any supplies that directly impact your service.
Contribution Margin:
This is the difference between the price of a dish and the cost to make it. Our calculator uses your contribution margin to help you determine how many dishes you need to sell to break even.
For more tips on managing your finances efficiently, see how Adopting Finance-as-a-Service (FaaS) for the Food and Beverage Industry can streamline your operations."
Variable Costs of a Restaurant: What You Need to Know
Variable costs are the expenses that change with the number of sales you make. In a restaurant, this usually means:
Food Costs:
Every dish you serve has a cost to prepare—ingredients, packaging, and even some labor.
Labor Costs:
Staff wages tied to service (e.g., kitchen and wait staff) that can vary depending on how busy your restaurant is.
Supplies:
Disposable items like napkins, straws, and cleaning products.
Fixed Costs in a Restaurant
While variable costs fluctuate, fixed costs are predictable and steady each month. These costs don’t change with your sales volume, so you need to ensure your revenue covers them to remain profitable. Some examples of fixed costs include:
Rent:
The cost of your restaurant’s space is typically the largest fixed cost.
Salaries:
Non-variable wages for managers, chefs, or administrative staff.
Insurance and Licenses:
Ongoing requirements for running a restaurant.
Utilities:
Electricity, gas, water, and waste disposal services.
Our calculator breaks down these fixed costs, helping you determine how much revenue you need to meet them and avoid financial strain.
Calculate Your Break-Even in Real-Time
To calculate your restaurant’s break-even point, simply enter your fixed costs, variable costs, and the average price of your menu items into our Restaurant Break-Even Calculator. It’ll give you a clear answer in minutes, empowering you to:
To understand even more how variable and fixed costs impact your bottom line, check out our Ultimate Guide to Calculating Break-Even Point for Restaurants for more insights.
Partner with Over Easy Office for Growth
At Over Easy Office, we don’t just stop at calculating your break-even point. Our global team of restaurant-trained back-office support experts helps you manage key aspects of your business, including:
Food Cost Control: By optimizing your purchases and minimizing waste, our inventory management services can help you keep variable costs under control, stabilizing food costs and improving profit margins.
Labor Cost Stabilization: We offer outsourced, trained talent for your restaurant’s back-office needs, helping you manage labor costs more efficiently without sacrificing quality.
Join the many restaurant groups that have stabilized food and labor costs through our tailored back-office support.
With over a decade of experience, we’re committed to helping you take control of your financial health and streamline operations.
Take Action Today!
Ready to eliminate the guesswork from your restaurant’s financials? After trying our Restaurant Break-Even Calculator, it's time to take the next step.
Book a free consultation with our restaurant experts and discover how close you are to reaching profitability.
With Over Easy Office, you’ll gain a partner dedicated to stabilizing costs and boosting profits with expert, restaurant-focused support. Let’s grow your business together!