Guide2026-04-26

How to Calculate Breakeven Point for Your Restaurant in India

Your restaurant breakeven point is where total revenue equals total costsno profit, no loss. Knowing this number helps you set realistic sales targets and pricing strategies. The formula is simple: divide your fixed costs by your contribution margin percentage.

Understanding Your Costs

Fixed costs include rent (40,000-1,50,000/month depending on location), salaries, licenses, and utilities. Variable costs change with salesingredients, packaging, delivery charges. If your dish costs 120 to make and sells for 300, your contribution margin is 180 (60%).

Quick Calculation Example

Say your monthly fixed costs are 2,00,000 and average contribution margin is 60%. Your breakeven = 2,00,000 ÷ 0.60 = 3,33,333 in monthly sales. That's roughly 11,111 daily or 37 orders at 300 average bill value.

Review your breakeven point every quarter. Rising ingredient costs or rent can shift this number. Small efficiencieslike switching to QR menus with DineCard (dinecard.in) at 99/monthhelp reduce fixed costs and improve profitability.

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