The formula
Two inputs. Fixed cost = rent + salaries + utilities + EMI + insurance — every line that doesn't move with covers. Variable cost rate = food cost % + variable labour + packaging + aggregator commission, expressed as a decimal of revenue (0.34 = 34%).
Worked example 1: Pune QSR
| Line | Amount (₹/month) |
|---|---|
| Rent (650 sqft @ ₹120) | 78,000 |
| Salaries (8 staff) | 1,80,000 |
| Utilities | 32,000 |
| EMI | 0 |
| Insurance + other | 5,000 |
| Fixed cost total | 2,95,000 |
Variable cost rate: food cost 30% + packaging 4% + aggregator (40% of revenue × 22% commission = 8.8%) + variable labour 3% = 45.8%. Contribution margin = 54.2%. Monthly break-even = ₹2,95,000 / 0.542 = ₹5.44 lakhs revenue. Daily = ₹18,150 over 30 days.
Worked example 2: Bengaluru casual-dining
| Line | Amount (₹/month) |
|---|---|
| Rent (1,400 sqft @ ₹220) | 3,08,000 |
| Salaries (16 staff) | 3,80,000 |
| Utilities | 65,000 |
| EMI (₹40L term loan) | 62,000 |
| Insurance + other | 8,000 |
| Fixed cost total | 8,23,000 |
Variable cost rate: food 32% + packaging 2% + aggregator (25% of revenue × 22% = 5.5%) + variable labour 4% = 43.5%. Monthly break-even = ₹8,23,000 / 0.565 = ₹14.57 lakhs. Daily = ₹48,580.
Worked example 3: Mumbai cloud kitchen
Cloud kitchens look cheap on fixed cost but bleed on variable. Rent 600 sqft @ ₹180 = ₹1.08L. Salaries (5 staff) = ₹95k. Utilities + software = ₹35k. Total fixed = ₹2.38L. Variable: food 30% + packaging 5% + aggregator (100% × 24%) = 24% + variable labour 5% = 64%. Contribution margin = 36%. Monthly break-even = ₹2,38,000 / 0.36 = ₹6.61 lakhs. The high variable cost from full aggregator dependence is the silent killer.
Why the sensitivity table matters more than the number
A break-even number is only useful if you know how much it moves when food cost % moves. A 2-point swing on food cost (30 → 32%) shifts the QSR daily break-even from ₹18,150 to ₹19,500 — about ₹40,000/month. A 4-point onion+tomato spike during August can push it past ₹21,000/day. The free calculator ships with a sensitivity table out of the box.
Open the break-even calculator →What break-even isn't
Break-even is the line where contribution margin equals fixed cost. It is not the line where you start being profitable — that's break-even plus your owner draw, growth budget, and tax provision. Most operators target 1.6× break-even as the realistic profitability line.