# How to calculate the margin & sales of a restaurant

Written by bill brown
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Sales in a restaurant are simply the total receipts--how much money you make from customers buying your food. The margin is what is left over after you pay all of your bills, such as food, supplies, wages, rent, etc. You can also express your margin as a percentage of your total sales.

Skill level:
Easy

### Things you need

• Total receipts for a given period, such as a month, quarter or year
• Total expenses for the same period
• Calculator

## Instructions

1. 1

Add the total of all expenses for your restaurant for the selected period of your analysis. Include utility bills, employee wages, food and supplies, taxes, rent, professional services and all other expenses.

2. 2

Add the total receipts for the given period. Include sales for meals as well as catering or other services your restaurant business provides.

3. 3

Subtract the total expenses from the total sales to get your margin. For instance, if your total expenses for a quarter are £15,600, and your total sales are £19,500, your margin is £3,900. If your final figure is negative, you are running at a loss.

4. 4

Calculate the margin as a percentage of sales by dividing by the total receipts. In this case, the £3,900 margin divided by £19,500 total sales would be .20, meaning 20 per cent of your sales are profit.

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