OPERATOR TOOL
Break-even sales
Convert fixed costs and variable-cost percentage into the sales level required to break even.
Variable cost must be below 100%. Average check is optional if you also want break-even covers.
Result
Enter fixed costs and variable cost, then calculate.
Contribution margin ratio
Break-even sales
Break-even covers
Formula
Contribution margin ratio = 1 − Variable cost %
Break-even sales = Fixed costs ÷ Contribution margin ratio
Break-even covers = Break-even sales ÷ Average check
Last calculation review: October 2026
Need to track multiple periods? The workbook is separate from this free calculator. See workbook options →
Worked example
Illustrative only. Fixed costs of $12,000 with 60% variable cost create a 40% contribution margin ratio. Break-even sales are $30,000. At a $25 average check, that is 1,200 covers.
What to do next
- Separate fixed and variable costs consistently.
- Run a downside case if variable cost rises or average check falls.
- Translate the monthly sales target into weekly and daily operating targets.
Questions operators ask
What if variable cost is 100%?
There is no positive contribution margin, so this formula cannot produce a finite break-even sales level.
Are covers required?
No. Average check is optional and only used to translate sales into customer covers.
Is break-even the same as a profit target?
No. Break-even is the point where the modeled contribution covers fixed costs.
Read Restaurant Break-Even Point for fixed-versus-variable cost logic, sensitivity and target-profit planning.