How many guests must you serve to cover costs? Divide fixed costs by the contribution margin per cover — the average check minus variable cost per guest. The nightly break-even headcount.
The example
$2,000 fixed, $25 check, $9 variable.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Margin/cover | 16 |
| 3 | $2,000 ÷ 16 | → 125 covers |
The formula
The formula:
How it works
How it works:
- Contribution margin per cover = average check − variable cost per guest (food, supplies).
- Divide fixed costs (rent, salaried labor, utilities) by that margin.
- The result is the number of covers needed to break even for the period.
- Round up — you can’t serve a fraction of a guest.
From break-even to profit target: to earn a target profit, add it to fixed costs first — (fixed + target_profit) / margin_per_cover. Comparing the break-even cover count to your actual seating capacity and turns tells you instantly whether the night’s numbers are even achievable.
Try it: interactive demo
Fixed costs, average check, variable cost.
Variations
Margin per cover
Check less variable:
Covers for a profit target
Add the goal:
Break-even sales
In dollars:
Pitfalls & errors
Margin must be positive. If variable cost ≥ check, you never break even — #DIV/0! or negative.
Round up. Use ROUNDUP — a partial cover doesn’t count.
Classify costs right. Fixed vs variable split drives the whole calculation.
Practice workbook
Frequently asked questions
How do I calculate break-even covers in Excel?
How many covers do I need for a profit target?
What's contribution margin per cover?
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