Break-Even Calculator

Find out exactly what revenue you need to break even. Grade your rent, labor, and food costs against industry benchmarks. Free tool from Restaurant Exit Advisor.

What This Calculator Does

The Break-Even Calculator takes your fixed costs (rent, insurance, utilities, debt service) and your variable cost percentages (food cost, labor cost) and calculates the exact monthly revenue you need to cover all costs. It also grades each input against industry benchmarks so you can see where your cost structure is out of line.

Industry Benchmarks

Food cost: 28-32% of revenue is healthy. Above 35% is a problem.
Labor cost: 28-35% of revenue is typical. Above 38% is a warning sign.
Prime cost (food + labor): Under 60% is healthy. Above 65% is dangerous. Above 70% is a structural problem.
Rent: Under 8% of revenue is healthy. Above 10% is a warning. Above 12% is a structural problem.

What to Do If Your Break-Even Is Unreachable

If your break-even revenue is higher than your realistic peak revenue, you have a structural cost problem. The two most common causes are rent that is too high for your volume and prime cost that has crept above 65%. Both are fixable -- but the fix requires a specific plan, not just a better month.