What is restaurant break-even?
Break-even sales equal fixed costs divided by the contribution margin ratio. With $15,000 in fixed costs and variable costs of 60% of sales, break-even sales are $37,500.
See it in action.
Here's an example using the numbers already in the calculator:
- 01Gather your numbers.
Fixed costs for the period: $15000; Variable costs as a percentage of sales: 60 %.
- 02Apply the formula.
Fixed costs ÷ (1 − variable cost percentage ÷ 100).
- 03Review the result.
Your estimated break-even sales is $37,500.00. Adjust the inputs to explore your own scenario.
Make the most of your numbers.
- Use figures from the same time period and keep your units consistent.
- Update your inputs regularly as prices, demand, and operating costs change.
- Use the result as a planning guide alongside your own business context and professional advice.
Frequently asked questions.
What does the restaurant break-even calculator tell me?+
Break-even sales equal fixed costs divided by the contribution margin ratio. With $15,000 in fixed costs and variable costs of 60% of sales, break-even sales are $37,500.
How often should I review this number?+
Review it whenever the underlying costs or assumptions change, and compare results consistently over time. The right frequency depends on your operation.
Is this result a substitute for financial advice?+
No. This calculator is an estimate for planning and education. Check your assumptions and consult a qualified professional when making financial or compliance decisions.
