Break-Even Calculator for Restaurant

If you own or are planning to open a restaurant, understanding your break-even point is one of the most critical financial exercises you can do. Restaurants face a unique cost structure: your two largest expenses — food cost and labor — are semi-variable and can shift week to week depending on covers, menu mix, and staffing levels. The industry rule of thumb is the "prime cost" formula: food cost plus labor should stay under 65% of revenue. That means your break-even point isn't just about covering rent — it's about ensuring every plate you serve contributes enough margin to cover overhead after food and labor are paid. Most new restaurants take 6 to 18 months to reach break-even, and many fail because they underestimate the fixed costs that pile up before the doors even open: buildout, equipment, permits, and initial inventory. This calculator is pre-filled with real restaurant benchmarks — $8,000/month in rent, 30% food cost, and 30% labor — so you can see where your operation stands before you plug in your own numbers. Use it to stress-test your concept, plan for slow months like January and February, and set realistic revenue targets for your first year.