Break-even & cash

Break-Even Sales Calculator

How much do I have to sell before this place makes a dollar?

Split your costs into the ones that move with sales and the ones that arrive whether you open or not. Break-even is the sales figure where what is left over from the first group exactly covers the second.

Your figures stay here. The calculator runs on this device; the share link stores its numbers after the # in the URL.
Worked answer$91,304See it ↓
01

Your numbers

A worked example is already loaded. Replace any field with the figures from the source named beside it.

Fixed costs per monthP&L and lease
$42,000.00

Rent, insurance, salaried management, loan payments, software, and anything else that arrives whether you open or not.

Cost of goodsP&L
27%

Food and beverage cost as a percentage of sales.

Variable labourP&L and payroll
22%

Hourly labour that scales with volume, as a percentage of sales. Do not include salaried management; that belongs in fixed costs.

Other variable costsP&L
5%

Credit card fees, delivery commissions, supplies, and anything else that rises with sales.

Average check (optional)POS period report
$38.00

Optional. Converts the break-even sales figure into a nightly cover count.

Days open per month (optional)Your schedule
26

Optional. Converts monthly break-even into a per-day target.

02

The answer

Break-even sales per month

$91,304

46.0% of every dollar goes to fixed costs and profit

  • Contribution marginWhat is left from each sales dollar after variable costs, to put against fixed costs.46.0%
  • Contribution per sales dollar$0.46
  • Total variable cost54.0%
  • Fixed costs per month$42,000
  • Break-even sales per day$3,512
  • Break-even covers per month2,403
  • Break-even covers per day93
Above this number every additional sales dollar contributes its margin straight to profit. Below it, the same margin is the rate you lose money.
03 Show the arithmetic
Total variable cost % = cost of goods % + variable labour % + other variable %
Contribution margin ratio = 1 − total variable cost %
Break-even sales = fixed costs ÷ contribution margin ratio
Break-even covers = break-even sales ÷ average check, rounded up to the next whole cover
04 What the answer leaves out
  • Salaried management belongs in fixed costs, not variable labour. Putting it in the wrong bucket moves break-even substantially.
  • This is a monthly model. A venue with heavy seasonality should run it against a realistic month, not an annual average.
Continue if it helps

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