How to Calculate Break-Even for a Food Truck
Before you buy a food truck, you need one number: how many plates per day do you need to sell to not lose money? Most food trucks need 15–25 plates per day to cover fixed costs, depending on price point and overhead. At a busy lunch spot, that's easily achievable. Parked in the wrong location, you'll sell 5 and bleed money.
Here's a full break-even calculation using real food truck costs for a BBQ operation in Memphis.
DeShawn's Fixed Costs (Monthly)
- Truck lease/payment: $1,800
- Insurance: $350
- Commissary kitchen rental: $500
- Permits and licenses: $150 (averaged monthly)
- Phone/POS system: $100
Total fixed costs: $2,900/month
Variable Costs (Per Plate)
- Meat, sides, bread, sauce: $4.50
- Packaging: $0.75
- Payment processing (3%): $0.42
Total variable cost per plate: $5.67
Selling price: $14. Contribution margin per plate: $14.00 – $5.67 = $8.33
The Break-Even Calculation
Break-even units = Fixed costs ÷ Contribution margin per unit
$2,900 ÷ $8.33 = 348 plates per month. That's about 15 plates per day if he works 23 days per month.
Is That Realistic?
A busy food truck at a good lunch spot can sell 80–150 plates in a day. At a festival, 200+ is common. If DeShawn works 5 days per week and averages just 20 plates per day, he hits break-even. At 40 plates per day (very achievable), he's earning $4,853/month in profit.
| Daily Sales | Monthly Revenue | Monthly Profit |
|---|---|---|
| 15 plates (break-even) | $4,830 | $0 |
| 30 plates | $9,660 | $4,489 |
| 50 plates | $16,100 | $9,935 |
| 75 plates | $24,150 | $16,603 |
| 100 plates | $32,200 | $23,270 |
What Could Go Wrong
- Food cost creep: Brisket prices fluctuate. A $1/lb increase raises variable cost by $0.80–$1.20 per plate.
- Bad locations: A food truck in the wrong spot sells 5–10 plates. Location scouting is everything.
- Equipment failure: A broken generator or refrigerator can cost $500–$2,000 and shut him down for days.
DeShawn's plan: start with weekend events and farmers markets (lower commitment, high traffic), prove the concept, then expand to weekday lunch spots.
Frequently Asked Questions
What is a break-even analysis?
It's a calculation that tells you exactly how many units you need to sell (or how much revenue you need) to cover all your costs. Below that number, you lose money. Above it, you profit.
How much does it cost to start a food truck?
Typical startup costs range from $50,000 to $200,000 depending on whether you buy new or used, the kitchen equipment needed, and local permit costs. Monthly operating costs (excluding food) are typically $2,500–$5,000.
What is a good profit margin for a food truck?
10–20% net margin is strong. Food trucks have an advantage over restaurants: no rent (or much lower rent), smaller staff, and flexibility to move to high-traffic locations.