Restaurant Break-Even Point: Formula and Calculator

By mise · Updated September 29, 2026

Quick answer: break-even sales = fixed costs ÷ (1 − variable costs as a % of sales). It is the revenue you need just to stop losing money.

Break-even is the line between losing and making money. Knowing it changes how you read every day of sales.

Example: fixed costs $30,000/month (rent, salaried staff, utilities); variable costs 38% of sales. Break-even = 30,000 ÷ 0.62 = $48,400/month, about $1,600 a day.

Break-even calculatorMonthly fixed costs ($)Variable costs (% of sales)

Break-even sales per month: —

How to lower it

One point of food cost off lowers break-even.
Renegotiate fixed costs.
Raise average check with drinks and desserts.

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Frequently asked questions

What is contribution margin?

What is left from each dollar of sales after variable costs.

Is labor fixed or variable?

Salaried labor is fixed; hourly labor that flexes with covers is semi-variable.

How long to break even on a new restaurant?

Commonly 12–24 months, depending on the build-out.

How much does mise cost?

A 7-day free trial, then US$33 a month per location (£26 in the UK).