Restaurant Investment Calculator

If you are planning to open a restaurant, investment is the most important part of the planning process. If your investment is poorly planned or managed, it can lead to financial loss or even failure. To manage your financial investment, you can use our Restaurant Investment Calculator. 

The calculator gives you accurate estimates of ROI, payback period, monthly expenses, and a breakdown of financial metrics to assess whether your restaurant is performing well compared to industry standards.

What is a Restaurant Investment Calculator?

A Restaurant Investment Calculator is an online tool that helps you estimate the return and analyze your investment in a new or existing restaurant. If you fill in all required fields, it will estimate the following:

• Initial investment required
• Monthly and annual profits
• Return on investment (ROI)
• Payback period (how long it takes to recover your capital)
• Industry benchmarking (food cost, labor cost, profit margin)
• And more

How to Use the Restaurant Investment Calculator?

The calculator is easy to use. It just requires a few inputs to give you a comprehensive investment breakdown.

Required Inputs:

1. Total Investment – The total amount you need to open the restaurant (for example, rent, equipment, licenses, decoration).
2. Monthly Sales – Your expected average monthly revenue from the restaurant.
3. Food Cost % – This is the portion of sales that is spent on food and ingredients. Industry standard: 28 to 35%.
4. Labor Cost % – The portion of sales paid to labor and management. Industry standard: 25 to 35%.
5. Other Monthly Expenses – Any recurring fixed or variable costs such as rent, utilities, marketing, and insurance.

Output:

• Monthly & Annual Profit
• ROI (% per year)
• Payback Period (in months/years)
• Assessment of overall investment performance
• Industry-standard comparisons
• And more

Real-World Example

To understand how it works in practice, let's look at a real-world example.

• Total Investment: 250,000 dollars
• Monthly Sales: 60,000 dollars
• Food and Beverage Cost %: 32%
• Labor Cost %: 30%
• Other Monthly Expenses: 8,000 dollars

Output:

• Food Costs = 60,000 dollars × 32% = 19,200 dollars
• Labor Costs = 60,000 dollars × 30% = 18,000 dollars
• Total Monthly Expenses = 19,200 dollars + 18,000 dollars + 8,000 dollars = 45,200 dollars
• Monthly Profit = 60,000 – 45,200 dollars = 14,800 dollars
• Annual Profit = 14,800 dollars × 12 = 177,600 dollars
• ROI = (177,600 dollars / 250,000 dollars) × 100 = 71%
• Payback Period = 250,000 dollars ÷ 14,800 dollars ≈ 16.9 months or 1.4 years

This indicates that your investment is excellent, with a high ROI and a payback period of under 2 years.