Break-even calculator

How to use it

1. 1Type your figures into the calculator. Nothing you type is uploaded or stored. The answer is worked out in your browser.
2. 2Read the result and its caption. The assumptions are shown on the screen beside the number.
3. 3Save your figures once in the back office. Then this screen, and every other one, answers for your shop instead of a generic one.

What it does

• We take your average check and subtract the food and drink cost in it. That is what each customer contributes.
• We divide your monthly fixed costs by the days you open. Then we add one day of labor cost. That is what one day must cover.
• We divide the day's costs by the contribution per customer and round up. Customer 46.5 has not covered you. Customer 47 has.
• If cost of goods is 100% or more, we stop and show a message. No number of customers can cover the rent when each sale earns nothing.

Common questions

How do I calculate break-even for a restaurant or cafe?

Add up one day of fixed costs and labor. Divide that by what each customer contributes, which is the average check minus food and drink cost. Round up. That is how many customers you need each day.

What counts as a fixed cost?

Anything you pay even if no customer comes in: rent, insurance, loan payments, software, licenses and base utilities. Food and hourly staff are not fixed. They go in cost of goods and daily labor.

Why is my break-even higher than my costs divided by my average check?

Dividing by the check assumes a 0% food cost. At 30% cost of goods, only 70 cents of each dollar is left to cover overhead. With the numbers in the form, dividing by the check says 33 customers. The real answer is 47.

How many days should I enter?

The days you open, not calendar days. 30 means open every day, 26 means closed one day a week, 22 means closed two days a week. The same rent split over fewer days raises the daily target: 26 days instead of 30 moves 44 customers to 47.

Does this include my own wages?

Only if you add them. Many owners leave their own pay out, and then break-even still feels like losing money. If you plan to pay yourself, add that amount to fixed costs.

Does this break-even calculator work for a salon or shop?

Yes. Use product cost in place of food cost, and the average sale in place of the average check. The math is the same.

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