๐ŸชBreakeven Sales Calculator

Find the minimum monthly revenue needed to cover all fixed costs

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Understanding Your Breakeven Point

Your breakeven point is the revenue level at which total costs equal total revenue โ€” no profit, no loss. Knowing this number before opening (or regularly during operations) helps you set realistic sales targets and evaluate whether your cost structure is sustainable.

Breakeven Formula

Example: $8,000 in fixed costs with a 60% contribution margin โ†’ breakeven = $8,000 รท 0.60 = $13,333/month.

Frequently Asked Questions

Should I include owner salary in fixed costs?

Yes, if you're working in the business, include a realistic market salary for your role. Omitting it makes your breakeven look artificially low and masks unprofitability.

What's a realistic COGS % for a restaurant?

Food cost typically runs 28โ€“35% of revenue for restaurants. Labor is separate. Total prime cost (food + labor) should ideally stay under 60โ€“65% of revenue.

How often should I recalculate my breakeven?

Recalculate any time fixed costs change significantly โ€” rent increases, hiring decisions, price changes. Quarterly reviews are a good practice for most small businesses.