Free tool

Restaurant profit and break-even calculator.

Put in a normal month’s sales and costs. See what you make, your margin, and the sales and guests you need each day to cover your costs.

  • Profit and margin
  • Break-even sales per day
  • Guests you need per day
Short answer

Profit = sales − food cost − rent − salaries − utilities − other costs. Break-even sales = fixed costs ÷ (1 − food cost %). With ₹2,40,000 of fixed costs a month and a 32% food cost, you break even at about ₹3,52,941 a month, or ₹11,765 a day if you are open 30 days.

Your month in numbers.

The numbers filled in are an example. Replace them with yours.

Profit this month ₹66,000
Profit margin14.7%
Food cost₹1,44,000
Fixed costs₹2,40,000
Break-even sales a month₹3,52,941
Break-even sales a day₹11,765
Guests a day to break even34
Guests a day now43

Profit before income tax and loan repayments.

Example: a 40-seat restaurant

These are example numbers, not a real restaurant’s accounts.

ItemPer month
Sales before GST₹4,50,000
Food cost at 32%−₹1,44,000
Rent−₹80,000
Salaries−₹1,20,000
Utilities−₹25,000
Other costs−₹15,000
Profit₹66,000 (14.7%)

Fixed costs are ₹2,40,000, so break-even is ₹2,40,000 ÷ (1 − 0.32) = ₹3,52,941 a month. Open 30 days, that is ₹11,765 a day, or 34 guests at ₹350 each.

How it works

  • Food cost = sales × food cost %.
  • Fixed costs = rent + salaries + utilities + other costs.
  • Profit = sales − food cost − fixed costs. Margin = profit ÷ sales.
  • Break-even sales = fixed costs ÷ (1 − food cost %). Each rupee of sales covers its own ingredients first; the rest pays the fixed costs.
  • Per day = break-even sales ÷ days open. Guests a day = that ÷ average bill per guest, rounded up.

The fastest way to move break-even is usually food cost. Price each dish with the menu price calculator, and read our guide to food cost percentage.

Get these numbers without a spreadsheet

Most owners only see their real profit when the accountant closes the books. Venditas POS shows sales by day, dish, hour and staff as you go. With recipes in the stock module, every paid bill takes ingredients out of stock, so you see what you actually used. Expenses paid from the drawer are entered at day close, next to the cash count. It costs ₹3 per paid order after 30 days free, with every feature included (see pricing).

Start free for 30 days

Questions

Quick answers

How do I calculate my restaurant’s profit?

Take your sales for the month before GST and subtract the cost of ingredients, rent, salaries, utilities (electricity, gas, water) and every other cost, such as repairs, marketing, software and delivery app commissions. What is left is your profit before income tax.

What is a good profit margin for a restaurant in India?

There is no single number: it depends a lot on rent, format and city. Instead of comparing with others, work out your own margin every month and watch which way it moves. Food cost and rent are usually the two biggest levers.

What does break-even mean for a restaurant?

Break-even is the sales you need to cover all your costs with nothing left over. Below it you lose money; every rupee of sales above it adds to profit, after the food cost on that rupee. The formula is fixed costs ÷ (1 − food cost %).

Should my sales figure include GST?

No. The GST you collect on bills goes to the government, so use sales before GST. If you only know your total collections, divide by 1.05 for a 5% restaurant.

Where do delivery app commissions and card charges go?

Add them under “Other costs”. If most of your sales come through delivery apps, you can also enter the sales you actually receive after commission instead.

Where do I get these numbers every month?

From your billing software. Venditas POS shows sales by day, dish, hour and staff, the stock used from your recipes, and the expenses entered at day close. It is free for 30 days, then ₹3 per paid order.

Every feature. ₹3 per order.

Billing, KOTs, kitchen screen, QR ordering, stock and reports, on the phones you already have. First 30 days free, no card.

Start free for 30 days