Author, Hospitality Industry Authority, and Expert Witness · Last updated: November 2025
Three ways
to put it to work.
Quick Sanity Check
Enter rough estimates for each input. Output gives a quick sanity check on whether the venue economics support the concept. If EBITDA is negative or break-even revenue exceeds realistic capacity, the concept needs reworking.
Sensitivity Testing
Run the calculator multiple times with different assumptions: optimistic (high volume, premium ticket, low COGS), base case (realistic estimates), conservative (lower volume, market-rate ticket, higher COGS). Sensitivity testing reveals which variables most affect profitability.
Concept Comparison
Run the calculator with assumptions for different concept types — neighborhood bar vs. bar and grill vs. sports bar. Compare projected margins to evaluate which concept best matches your capital position and market opportunity.
Realistic ranges
for each input.
Use these benchmark ranges as a starting reference for your inputs above.
As a percentage of revenue
Healthy bars run rent + CAM + utilities + property tax pass-through at 8–12 percent of revenue. Above 12 percent suggests over-rent. Above 15 percent typically unsustainable.
Operating economics only.
The calculator covers operating economics — the ongoing performance of a running venue. It does not include:
For the complete financial model with all of the above built in, see the
Bar Business Plan.
No data stored.
To save your specific inputs and outputs as a reference, take a screenshot or print the page after entering your numbers. The calculator does not store data between sessions — nothing leaves your browser.
Inventory control affects COGS
