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Break-even point and break-even date calculator
The break-even point is the revenue from which the site covers all its costs, fixed and variable: below it, the site loses money; above it, it makes money. It is calculated by dividing fixed costs by the contribution margin ratio. The break-even date tells you on which day of the year that revenue is reached. The calculation runs in your browser, no sign-up.
Calculate your break-even point
The formula
Contribution margin = revenue excl. VAT − variable costs
Contribution margin ratio = contribution margin ÷ revenue excl. VAT
Break-even point = fixed costs ÷ contribution margin ratio
Break-even date = break-even point ÷ revenue excl. VAT × days in the financial year
This is the method presented by Bpifrance Création. Fixed costs must be paid even with no sales at all; variable costs change with the volume of activity.
The prefilled example
| Line | Calculation | Value |
|---|---|---|
| Revenue excl. VAT | Year | €600,000 |
| Variable costs | Ingredients, packaging, commissions | €210,000 |
| Contribution margin | 600,000 − 210,000 | €390,000 |
| Contribution margin ratio | 390,000 ÷ 600,000 | 65.0% |
| Fixed costs | Year | €240,000 |
| Break-even point | 240,000 ÷ 0.65 | €369,231 |
| Break-even date | 369,231 ÷ 600,000 × 360 | 222 days |
Reading the result
In the example, the restaurant covers its costs on day 222 of the financial year, counted on 360 days: revenue earned after that makes the year’s profit. The calculation assumes regular sales; a seasonal business reaches its break-even point earlier or later depending on the calendar.
Two levers lower the break-even point: cutting fixed costs, or raising the margin ratio, by lowering food cost or reviewing prices. The cost price of a dish shows the share of each plate; prime cost, the combined weight of food and labour. For several sites, do the calculation site by site: the multi-site guide explains how to compare.