About the Restaurant Margin Calculator
What is the Restaurant Margin Calculator?
This restaurant margin calculator shows where your sales go – food, staff, rent, utilities and delivery-app commission – and what is left as profit.
It also works out the monthly sales you need to break even.
How to use the Restaurant Margin Calculator
- Monthly Sales before GST (₹) (sample: 8,00,000)
- Food Cost (% of sales) (sample: 32)
- Staff Salaries (₹/month) (sample: 1,80,000)
- Rent (₹/month) (sample: 1,20,000)
- Electricity, Gas and Water (₹/month) (sample: 50,000)
- Online Orders (% of sales) (sample: 40)
- Aggregator Commission (%) (sample: 25)
- Other Costs – marketing, repairs, software (₹/month) (sample: 40,000)
- Press Calculate Restaurant Margin (results also refresh as you type). The result card shows the Net Profit Margin, along with Monthly profit, Prime cost (food + staff), Rent as % of sales and Aggregator commission.
Formula used
Break-even sales = Fixed costs ÷ (1 − Food cost % − Online share × Commission %)
- Prime cost = food cost + staff cost
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly Sales before GST (₹) | 8,00,000 |
| Food Cost (% of sales) | 32 |
| Staff Salaries (₹/month) | 1,80,000 |
| Rent (₹/month) | 1,20,000 |
| Electricity, Gas and Water (₹/month) | 50,000 |
| Online Orders (% of sales) | 40 |
| Aggregator Commission (%) | 25 |
| Other Costs – marketing, repairs, software (₹/month) | 40,000 |
| Result | Value |
|---|---|
| Net Profit Margin | 9.3% |
| Monthly profit | ₹74,000 |
| Prime cost (food + staff) | 54.5% |
| Rent as % of sales | 15% |
| Aggregator commission | ₹80,000 |
| Break-even monthly sales | ₹6,72,414 |
| Benchmarks | Prime cost under 60–65%, rent under 10–15% of sales, net margin 10–15% is healthy |
Tips for using the Restaurant Margin Calculator
- Keep prime cost under 60–65% of sales.
- Delivery commissions of 20–30% can wipe out margins – price app menus higher or push direct orders.