Guide
The number you have to hit.
Most owners can name their rent and not their break-even. It is the more useful of the two.
In short
Break-even is fixed costs divided by contribution margin, where contribution margin is the share of each euro left after variable costs. Include your own wages in fixed costs, or you will calculate a break-even for a business that only works while you are unpaid.
Updated 28 August 2026
The calculation
Add up your monthly fixed costs: rent, rates, insurance, finance, salaried staff, subscriptions, and your own drawings. Work out your contribution margin as the share of each euro of sales left after food, packaging, commission and card fees. Divide fixed costs by that share and you have the monthly revenue you need.
Include your own wages
This is where most break-even calculations go wrong. A restaurant that breaks even only because the owner takes nothing has not broken even, it has borrowed from you. Put in what it would cost to replace yourself and the number becomes honest, even if it is uncomfortable.
Convert it to something operational
A monthly revenue figure is abstract. Divide by trading days for a daily target, then by average order value for a daily order count. A target of a certain number of orders a day is something a team can understand and work towards. A monthly revenue figure is not.
Recalculate when anything structural changes
A rent review, a new hire, a change in channel mix or a commission change all move it. Restaurants often carry a break-even figure calculated years ago, which is worse than none because it produces false confidence.
The honest limitation
Break-even assumes a stable mix and stable costs, and restaurants have neither. It is a planning tool and a sanity check, not a forecast. Use it to answer whether a plan is plausible, not to predict a month.
Questions, answered straight.
Not covered here? Just ask us.
What if I am below break-even?
Either revenue rises, contribution margin improves, or fixed costs fall. Those are the only three levers, and knowing which one you are pulling stops you working on the wrong thing.
Should I include tax?
For an operational break-even, work on pre-tax profit. Add tax planning separately with your accountant.
Does it change by season?
The break-even itself does not, but your ability to hit it does. Calculate it once and then test it against your quiet months, which is the real question.
How does delivery commission affect it?
It reduces contribution margin, which raises the revenue needed. This is why a growing marketplace share can raise your break-even even as revenue grows.
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