Restaurant Menu Item Break-Even Calculator
Use this calculator to determine how many orders of a specific menu item you need to sell each month to break even, based on its selling price, food cost, labor cost per unit, and its share of fixed overhead.
About this calculator
Calculate how many units of a menu item you need to sell each month to cover its fixed allocated costs and reach profitability, based on price, food cost, and labor cost.
Frequently Asked Questions
What is contribution margin in restaurant menu pricing?
Contribution margin is the menu price minus the direct food and labor costs of preparing that item. It's the amount each sale contributes toward covering fixed costs and generating profit.
How do I allocate fixed costs to a single menu item?
A common method is dividing total monthly fixed costs (rent, utilities, management salaries) proportionally by expected sales mix or by an even split across menu categories.
Why would I want a target profit margin instead of just breaking even?
Breaking even only covers costs with zero profit. Setting a target margin shows how many units you need to sell to actually generate meaningful profit from that item.