Restaurant Break-Even Calculator
Work out exactly how many covers you must serve each month before you start making money — from your monthly fixed costs, average check and variable cost per cover.
Restaurant Break-Even Calculator
Rent, salaries, utilities, insurance, marketing, software
Break-even covers = fixed costs ÷ (average check − variable cost per cover)
Ingredients and packaging — costs that rise with every cover
Contribution margin / cover
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Covers to break even / month
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Covers / day (30-day month): —
Project at your actual covers
Projected monthly profit / loss: —
Break-Even Formula
Covers to break even = Fixed costs ÷ (Average check − Variable cost per cover)
Example: ₹3,00,000 fixed costs, ₹300 average check, ₹120 variable cost → contribution ₹180 → 1,667 covers/month (~56/day).
Above 1,667 covers, every additional cover contributes ₹180 to profit.
Typical Monthly Fixed Costs (India, 2026)
| Restaurant type | Fixed costs / month |
|---|---|
| Small café (2,000 sq ft) | ₹1,50,000 – ₹2,50,000 |
| Casual dining (2,500–3,000 sq ft) | ₹3,00,000 – ₹5,00,000 |
| Cloud kitchen / delivery-only | ₹80,000 – ₹1,50,000 |
| Fine dining (3,500+ sq ft) | ₹6,00,000 – ₹12,00,000 |
Rent, salaries, utilities, insurance, marketing and software. City tier shifts these ranges 30–50%.
Contribution Margin Benchmarks (2026)
| Restaurant type | Average check | Variable cost / cover | Contribution % |
|---|---|---|---|
| Casual dining | ₹250 – ₹350 | ₹120 – ₹150 | 50 – 60 |
| QSR / café | ₹150 – ₹250 | ₹60 – ₹90 | 40 – 55 |
| Cloud kitchen | ₹180 – ₹280 | ₹90 – ₹120 | 45 – 60 |
| Fine dining | ₹700 – ₹1,200 | ₹300 – ₹450 | 55 – 65 |
Indicative 2026 ranges. Contribution % = (check − variable) ÷ check. QSRs and cloud kitchens often sit at the lower end.
Price your menu to hit the margin
A break-even target is only useful if your menu pricing supports it. Get ingredient-accurate cost per dish and food cost % with the RecipeScaler food cost tool, then set selling prices that keep your contribution healthy.
Our cost basis
Benchmarks are 2026 Indian market ranges and are indicative only. The calculator uses your own inputs — fill in your real fixed costs, check average and variable cost per cover for a meaningful break-even number.
Restaurant Break-Even — FAQ
How many covers do I need to break even?
Divide your monthly fixed costs by the contribution margin (average check − variable cost per cover). Example: ₹3,00,000 fixed costs with a ₹300 check and ₹120 variable cost gives a ₹180 contribution, so you need 1,667 covers a month — about 56 covers a day. That is the number where profit starts.
What is the difference between fixed and variable costs?
Fixed costs stay the same however many guests you serve — rent, salaries, utilities, insurance, marketing. Variable costs rise with every cover — mainly ingredients and packaging. Your contribution margin is what is left after the variable cost to pay for the fixed costs and build profit.
What is a good contribution margin for a restaurant?
Most Indian and casual restaurants target a food cost of 28–35%, which leaves a contribution margin of roughly 40–60% of the average check after other variable costs. If your contribution is under 40%, check ingredient costs and portion sizes before raising prices.
How is break-even different for a cloud kitchen?
Cloud kitchens have lower fixed costs (no dining hall, smaller staff) but higher delivery costs per order, which pushes up variable cost per cover. Break-even typically comes sooner because fixed costs are low — that is why dark kitchens need fewer covers to be profitable.
What does "covers" mean in a restaurant?
A cover is one guest served, so covers per day equals the number of customers who order in a day. Cover count, not turnover alone, drives break-even because the check average and variable cost are both calculated per cover.
How do I lower my break-even point?
Cut fixed costs (renegotiate rent, right-size staff), raise the average check (better menu mix, upsells), or trim variable cost per cover (tighter portions, live mandi ingredient pricing). Any of these shrinks the covers you need per month.