By Menu & Margin editorial team · Published · Updated
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Break-even sales
Estimate the sales dollars needed to cover fixed costs given your contribution margin. Use your own P&L—do not invent a margin.
Rent, salaried management, insurance, loan payments, and other costs that do not move with covers
Approximate (Sales − variable costs) ÷ Sales × 100. Variable costs often include food, hourly labor, and card fees.
Break-even sales
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Formula
Break-even sales = Fixed costs ÷ (Contribution margin % ÷ 100)
Worked example
Fixed costs $25,000 and contribution margin 65% → break-even sales = 25,000 ÷ 0.65 = $38,461.54 for the period. Reclassify variable vs. fixed with your bookkeeper before trusting the estimate.
This is a planning estimate. Tip liabilities, comps, and seasonal rent clauses can move the number. Confirm classifications with your bookkeeper.
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