Restaurant P&L Calculator

A projected profit and loss (P&L), also called a pro-forma income statement, lays out expected revenue and every category of cost to arrive at gross margin, EBITDA, EBIT and net profit. It is usually the first document a bank or accountant asks to see because it shows in one page whether the business model produces a profit and where the money goes. The calculator builds it for a full year in both euros and as a percentage of sales.

Prime cost is the sum of cost of goods (food and beverage materials) plus total labour cost, expressed as a percentage of revenue. It is the most-watched control number in hospitality because together those two lines are the largest and most controllable costs. A full-service restaurant typically aims to keep prime cost around 60-65% of sales; if it drifts much higher, EBITDA gets squeezed regardless of how strong revenue looks.

EBITDA is earnings before interest, tax, depreciation and amortisation: revenue minus materials, labour and the other operating costs (rent, utilities, marketing, other fixed). EBIT subtracts depreciation and amortisation from EBITDA. Net profit then subtracts interest and applies the tax rate. EBITDA shows pure operating performance, EBIT factors in the cost of using assets, and net profit is what is actually left for the owner.

It varies by format and location, but a well-run full-service restaurant often targets an EBITDA margin around 15-25% of revenue. The example in this tool reaches 20%. As always, the most useful benchmark is your own trend over time and the structure of your specific concept rather than a single industry figure.

Net profit is computed as pre-tax profit (EBIT minus interest) multiplied by one minus the tax rate. So if pre-tax profit is 72,000 euros and the effective rate is 24%, tax is 17,280 and net profit is 54,720. Use your own effective rate; the figure shown is illustrative and you should confirm the exact rate with your accountant.