Inputs
Example data table
| Scenario | Sales inputs | Fixed costs | Variable rates | Key outputs |
|---|---|---|---|---|
| Neighborhood bistro | 26 days, 120 covers/day, $18 check | $4,570/month | Food 32%, Labor 28%, Fees 2.6% | Sales $56,160 • Break-even ~$24,300 • Margin varies by inputs |
| Busy lunch spot | 27 days, 220 covers/day, $13 check | $6,200/month | Food 30%, Labor 26%, Fees 2.9% | Higher volume lowers fixed cost per cover |
| Delivery-heavy concept | Monthly sales override $80,000 | $7,400/month | Delivery 18%, Food 31%, Labor 22% | Delivery fees can dominate margin quickly |
Numbers are illustrative. Replace with your real costs for actionable planning.
Formula used
- Projected Sales = Days Open × Covers/Day × Average Check (or Monthly Sales Override).
- Variable Costs = Sales × (Food% + Labor% + Marketing% + Fees% + Delivery% + Waste% + Comps%) + Monthly Add-ons.
- Total Costs = Fixed Costs + Variable Costs.
- Net Profit = Sales − Total Costs; Profit Margin = Net Profit ÷ Sales.
- Break-even Sales = (Fixed Costs + Add-ons) ÷ (1 − Variable Rate on Sales).
- Required Sales for Target Margin = (Fixed Costs + Add-ons) ÷ (1 − Variable Rate − Target Margin).
- Suggested Average Check = Required Sales ÷ Monthly Covers.
How to use this calculator
- Enter your days open, expected covers, and average check.
- If you already know monthly sales, enable the override.
- Fill in fixed costs like rent, utilities, and software.
- Set variable percentages for food, labor, fees, and waste.
- Choose a target profit margin to see sales requirements.
- Click calculate to view profit, break-even, and pricing guidance.
- Download CSV or PDF to share with partners or lenders.
Note: This tool estimates costs and outcomes. Confirm assumptions with your accounting records and update percentages when menu mix or staffing changes.
Monthly sales and cover assumptions
Start with realistic traffic. If you open 26 days and serve 120 covers daily, you handle 3,120 covers monthly. At an $18 average check, projected sales are $56,160. Small changes matter: adding 10 covers per day raises monthly sales by $4,680 at the same check for realistic owner-level decisions.
Fixed cost structure and operating leverage
Rent, utilities, insurance, permits, software, and baseline marketing form fixed costs. Using the example table, $4,570 of fixed expenses equals about $1.47 per cover at 3,120 covers. If covers fall to 2,500, the same fixed costs become $1.83 per cover, compressing margin even if food and labor rates stay stable. This is operating leverage: higher volume spreads overhead across more guests.
Variable cost rates that move with revenue
Food, labor, payment processing, delivery fees, waste, and comps are modeled as a percent of sales. With 32% food and 28% labor, you are at 60% before fees. Add 2.6% processing and 2% waste, and the variable rate reaches 64.6%. On $56,160 sales, that equals about $36,276 in variable costs. Watch comps and waste closely; small percentage leakage can erase a week of profit.
Break-even and target margin planning
The break-even formula divides fixed-like costs by contribution margin (1 − variable rate). With $4,570 fixed costs and a 64.6% variable rate, break-even sales are roughly $12,910. For a 12% target profit margin, required sales rise to about $16,800, helping you test pricing or volume strategies quickly. Use the suggested average check output to see how much menu pricing must move if covers cannot increase.
Using results to adjust pricing and staffing
Review profit per cover and cost per cover to guide menu engineering and scheduling. If the chart shows labor driving costs, tighten station coverage during slow periods and cross-train to reduce overtime. If delivery fees spike, renegotiate commission or push in-house ordering. Re-run scenarios monthly to reflect seasonality, new menu items, and supplier changes, then compare results to your actual P&L.
FAQs
What is the difference between fixed and variable costs?
Fixed costs stay relatively stable each month, like rent and software. Variable costs scale with sales, like food cost, hourly labor, card fees, and delivery commissions. Separating them helps you see how volume changes impact profitability.
How should I set my food cost percentage?
Use recent purchase data and recipe costing. Divide food and beverage cost by sales for the same period. Start with a realistic range for your concept, then update monthly as suppliers, portion sizes, and menu mix change.
Why does break-even sales change when my percentages change?
Break-even depends on contribution margin, which is 1 minus the variable cost rate. When variable percentages rise, each sales dollar contributes less toward covering fixed expenses, so the sales level needed to break even increases.
Can I model delivery-only or catering revenue?
Yes. Turn on the monthly sales override and enter your expected revenue. Add delivery platform fees as a percentage. If volumes differ from dine-in, also enter a monthly covers override so per-cover metrics remain meaningful.
What should I do if my profit margin is negative?
First confirm inputs. Then reduce high drivers: renegotiate rent or fees, lower waste, adjust labor scheduling, and update pricing. Test scenarios by changing one item at a time and compare the chart before committing operational changes.
How accurate are the CSV and PDF exports?
They export the same results shown on the page at calculation time. Accuracy depends on your inputs, so refresh costs and percentages regularly. Use exports for sharing assumptions, tracking revisions, and documenting decisions with stakeholders.