Restaurant Break Even Calculator — Free Online Tool
Find out exactly how many customers you need to break even and the minimum revenue your restaurant must generate to cover all fixed and variable costs. Instant results — no spreadsheet, no signup.
What is your monthly rent?
Fixed lease or rental cost for your restaurant space.
Ideally below 10% of monthly revenue. Typically ₹40K–₹1.5L for Indian restaurants.
What are your staff salaries?
Total monthly pay for chefs, waiters, managers, and helpers.
Usually 25–35% of revenue. India benchmark: ₹80K–₹2L/month.
What are your utility bills?
Monthly electricity, water, gas, and internet costs.
Typically ₹15K–₹40K. Switch to LED & energy-efficient equipment to reduce this.
How much do you spend on marketing?
Digital ads, Swiggy/Zomato commissions, printing, promotions.
Recommended: 2–5% of monthly revenue. Enter ₹0 if none.
Any other fixed costs?
EMIs, insurance, POS software, licenses, maintenance.
Include loan EMIs and any recurring monthly obligations.
Your Revenue Inputs
Average spend per customer and your variable cost percentage.
Break Even Calculated!
Scroll down to review your full break even analysis.
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What is a Restaurant Break Even Point?
Your restaurant's break even point is the exact level of revenue — and number of customers — at which you cover 100% of your costs with zero profit and zero loss. Every rupee earned above the break even point is pure profit.
Understanding your break even answers: "How many covers do I need today just to keep the lights on?", "Is my current customer volume sustainable?", and "How much of a slow week can I absorb before I lose money?"
How to Calculate Break Even Point for a Restaurant (Step-by-Step Formula)
- Step 1 — Contribution Margin %: CM% = 100 − Food Cost %
- Step 2 — Break Even Revenue: Break Even Revenue = Total Fixed Monthly Costs ÷ (CM% ÷ 100)
- Step 3 — Break Even Customers: Break Even Customers = Break Even Revenue ÷ Average Ticket Value
- Step 4 — Daily Target: Customers per Day = Break Even Customers ÷ Operating Days per Month
What is Contribution Margin in a Restaurant?
The contribution margin is the amount left from each customer's bill after deducting food and variable costs. CM per Customer = Average Ticket × (1 − Food Cost %). A higher CM means fewer customers needed to break even.
A healthy contribution margin for Indian restaurants is 62–72%. Below 58% makes break even very difficult without extremely high volumes.
How to Lower Your Restaurant's Break Even Point
1. Reduce Fixed Costs
A 10% reduction in rent or salaries cuts your break even customer count by 10% overnight. Negotiate lease renewals, cross-train staff, switch to energy-efficient equipment.
2. Increase Average Ticket Value
When each guest spends more, you need fewer of them to cover fixed costs. Use QR digital menus with upsell prompts to suggest beverages, sides, and desserts. Loop Menu restaurants see an average 18% increase in ticket value.
3. Lower Your Food Cost Percentage
Every 1% reduction in food cost % directly improves your contribution margin by 1%. Standardise recipes, implement FIFO stock rotation, and use our Food Cost Calculator to track every dish accurately.
Frequently Asked Questions
How many days per month should I take to break even?
Industry convention for a healthy restaurant: break even by Day 18–22 of each month, leaving 8–12 days of pure profit. If you're breaking even on Day 25 or later, your cost structure is too heavy.
Can I use this break even calculator for a cloud kitchen?
Yes. For a cloud kitchen, fixed costs are typically much lower and your average ticket is your average delivery order value. Most cloud kitchens break even at just 15–30 orders/day.
Other Free Restaurant Calculators
Use these tools alongside the break even calculator for a complete financial picture: