Chartered Financial Analyst specializing in small business and hospitality finance.
Determine how many meals your food truck must sell per month to cover all costs. Enter any three variables—Monthly Fixed Costs, Avg. Price per Meal, Avg. Variable Cost per Meal, or Breakeven Meals Sold—to solve for the fourth.
Food Truck Breakeven Calculator
Food Truck Breakeven Formula
The breakeven formula for a food truck finds the number of meals (Q) it must sell for total monthly revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Price per Meal (P):
P = (F / Q) + V
Solve for Avg. Variable Cost per Meal (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead (e.g., truck payment, insurance, permits, commissary kitchen fees, gas).
- Avg. Price per Meal (P): Your average revenue per customer order.
- Avg. Variable Cost per Meal (V): The direct costs per meal sold (e.g., food ingredients, packaging, napkins, payment processing fees).
- Breakeven Meals Sold (Q): The total number of meals you need to sell to reach $0 in monthly profit.
Related Calculators
- Restaurant Breakeven Calculator
- Bakery Breakeven Calculator
- Catering Breakeven Calculator
- Startup Breakeven Calculator
What is a Food Truck’s Breakeven Point?
A **Food Truck Breakeven Point** is the number of meals (or customer orders) you must sell in a given period (usually a month) to cover your total costs. This is the minimum sales volume you need to achieve to start being profitable.
**Fixed Costs (F)** are your monthly “overhead.” These are the expenses you pay regardless of whether you sell one meal or 500. This includes your truck payment, insurance, city permits, commissary kitchen rental, gas/propane, and payment system subscriptions.
**Variable Costs (V)** are the costs tied *directly* to each meal you sell. This is primarily your “Food Cost” (ingredients) and “Paper Cost” (packaging, napkins, forks). It also includes any payment processing fees (e.g., 2.9% per swipe) that are tied to a sale.
The **Contribution Margin** (P – V) is the profit from a single meal that goes toward paying off your large monthly fixed costs. This calculator finds how many sales are needed to cover your total overhead. Every meal sold *after* this point generates your net profit.
How to Calculate Food Truck Breakeven (Example)
Let’s calculate the breakeven point for a food truck.
-
Identify Monthly Fixed Costs (F):
The truck has $3,000 in monthly payments, permits, and commissary fees.
-
Identify Avg. Price per Meal (P):
The average customer spends $14.00.
-
Identify Avg. Variable Cost (V):
The food and packaging for an average meal cost $5.00.
-
Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per meal: $14.00 (P) – $5.00 (V) = $9.00.
Next, divide the fixed costs by this margin:
Q = $3,000 / $9.00 = 333.33 -
Conclusion:
The food truck must sell 334 meals (rounding up) each month to cover all costs and start making a profit.
Frequently Asked Questions (FAQ)
The most common are: truck/equipment loan payments, vehicle insurance, general liability insurance, city permits, commissary kitchen fees, and monthly POS system/website fees.
This includes all food ingredients, all paper/plastic packaging (containers, bags, forks, napkins), and any per-sale payment processing fees (e.g., 2.9% of the $14 sale).
This is debatable. If you drive a set route every month, you can bundle it into **Fixed Costs (F)**. If your driving depends heavily on event bookings, it’s more of a **Variable Cost (V)** per event. For simplicity, most models place it in (F).
Enter your (F) (e.g., $3,000), (V) (e.g., $5), and a realistic sales goal (Q) (e.g., 500 meals/mo). Solve for (P): `P = ($3,000 / 500) + $5 = $6 + $5 = $11`. This means you must charge an average of $11 just to break even.