What this calculator does
The Restaurant Income & Expense (Profit/Loss) Plan Calculator turns a month of restaurant or food-service numbers into a clean one-page profit-and-loss summary. You enter your sales revenue and seven common expense categories; the tool adds up total costs, calculates operating profit, and — most usefully — shows every cost item and the profit itself as a percentage of sales. The math is currency-agnostic, so substitute any currency you like for the generic "currency unit."
How to use it
Enter your monthly Sales Revenue first. Then fill in Cost of Materials (food/ingredient cost), Labor, Rent, Utilities, Depreciation, Communication/Telecom and any Other expenses. Leave a field blank to treat it as zero. The result table lists each amount alongside its share of sales, plus Total Expenses, Operating Profit and the Operating Profit Margin. Watch the FL Ratio (Food + Labor) — a classic restaurant KPI that operators often target around 55-60%.
The formula explained
Total Expenses is simply the sum of all seven cost categories. Operating Profit is Sales Revenue minus Total Expenses, and can be negative when costs exceed sales.
$$\begin{gathered} \text{Operating Profit} = \text{Sales Revenue} - E \\[1.5em] \text{where}\quad \left\{ \begin{aligned} E &= \text{Materials} + \text{Labor} + \text{Rent} + \text{Utilities} \\ &\quad + \text{Depreciation} + \text{Communication} + \text{Other} \end{aligned} \right. \end{gathered}$$The cost ratio for any item X is \(X / \text{Sales} \times 100\), and the profit margin is \(\text{Operating Profit} / \text{Sales} \times 100\).
$$\text{Profit Margin} = \frac{\text{Sales Revenue} - \text{Total Expenses}}{\text{Sales Revenue}} \times 100\%$$All percentages are rounded to two decimal places using standard half-up rounding. If sales are zero, ratios are shown as 0 to avoid dividing by zero. The FL Ratio combines food and labor as a share of sales:
$$\text{FL Ratio} = \frac{\text{Materials} + \text{Labor}}{\text{Sales Revenue}} \times 100\%$$
Worked example
With Sales = 2,000,000 and costs of 600,000 (materials), 500,000 (labor), 180,000 (rent), 200,000 (utilities), 130,000 (depreciation), 30,000 (communication) and 60,000 (other): Total Expenses = 1,700,000, Operating Profit = 300,000, and Profit Margin = 15.00%.
$$\text{Profit Margin} = \frac{2{,}000{,}000 - 1{,}700{,}000}{2{,}000{,}000} \times 100\% = 15.00\%$$The material (food) cost ratio is 30.00%, labor is 25.00%, and the FL ratio is 55.00%. The cost shares (85%) plus profit (15%) add up to 100% of sales.
$$\text{FL Ratio} = \frac{600{,}000 + 500{,}000}{2{,}000{,}000} \times 100\% = 55.00\%$$
FAQ
What is the food cost ratio? It is the Material Cost Ratio — ingredient cost divided by sales. Many restaurants aim for roughly 28-35%.
What is the FL ratio? Food + Labor cost as a percent of sales, a headline efficiency metric for restaurants.
Why is my profit negative? Your total expenses exceed sales, producing an operating loss; the margin will be negative too.
