Free Tool

Bar Break-Even Calculator

Q: What are typical fixed costs for a bar?

The largest fixed costs for most bars are rent (typically 5-10% of revenue), labor (often the single largest expense at 25-35%), and utilities. Beyond those, common fixed costs include liquor licenses ($300-$14,000/year depending on state), general liability and liquor liability insurance ($1,000-$5,000/year), and merchant processing fees (2-3% of revenue).

Use this free calculator to find out exactly how much revenue your bar needs to cover all fixed costs. Enter your monthly expenses and target profit margin to see your daily revenue target, monthly goal, and how many drinks you need to sell each day.

Monthly Rent

Monthly Utilities

Electric, gas, water, internet

Monthly Labor

Total payroll including bartenders, servers, kitchen staff

Monthly Insurance

Other Monthly Costs

Licenses, marketing, merchant fees, supplies, etc.

Target Profit Margin 15%

Healthy bars target 10–15%. Drag to adjust.

1% 30% 60%

Avg Drink Price

Used to calculate how many drinks you need to sell per day

Enter your monthly costs and click

"Calculate Break-Even" to see your targets

Want this automatically, every day, from your POS?

BarBoard syncs directly from your Square POS and calculates your P&L in real time — no spreadsheets, no manual entry.

Start Tracking Profit — Free

No credit card required

Break-Even FAQ

What is a bar break-even point?

Your break-even point is the minimum revenue your bar needs to generate to cover all fixed costs with zero profit left over. It's not a goal — it's a floor. Any sales above this number contribute directly to profit. Knowing your break-even gives you a concrete daily target to hit before you start making money, and helps you understand exactly how much cushion you have when business is slow.

What are typical fixed costs for a bar?

The largest fixed costs for most bars are rent (typically 5–10% of revenue for well-located bars), labor (often the single largest expense at 25–35%), and utilities. Beyond those, common fixed costs include liquor licenses ($300–$14,000/year depending on state), general liability and liquor liability insurance ($1,000–$5,000/year), merchant processing fees (2–3% of revenue), and accounting/POS software subscriptions. Many bar owners underestimate these line items — capturing them all in a break-even calculation prevents surprises.

How can I lower my bar's break-even point?

There are two levers: reduce fixed costs or increase your profit margin. On the cost side, renegotiating rent, optimizing scheduling to reduce labor hours during slow periods, and consolidating suppliers for better pricing are the highest-impact moves. On the margin side, raising drink prices by even $0.50–$1.00, upselling premium spirits, and improving inventory control to reduce pour cost all increase the revenue each sale contributes toward covering overhead. A bar that lowers its monthly fixed costs by $2,000 reduces its daily break-even by ~$130 — that's real breathing room.