How this calculator works
Each serving costs the same ingredients and cup, so those are variable costs. Stand hire, a permit, a cooler and ice do not depend on how many cups you sell, so they are fixed costs. Revenue is the price times servings sold, profit is revenue minus both kinds of cost, and the contribution per serving is the price minus the variable cost. Dividing fixed costs by the contribution gives the number of servings that covers the setup, rounded up to a whole cup. Adding the target profit to the fixed costs gives the servings needed to hit that target.
Formula
Contribution per serving = price - (ingredients + cup). Fixed costs = stand + permit + equipment + other. Profit = price x servings - variable cost x servings - fixed costs. Break-even servings = fixed costs / contribution, rounded up. Servings for a target = (fixed costs + target profit) / contribution, rounded up.
Worked example
Cups sell for $2.00 and cost $0.45 of ingredients plus $0.10 for the cup, leaving $1.45 per serving. Fixed costs are $60 + $25 + $40 + $10 = $135, so break-even is $135 / $1.45 = 93.1, rounded up to 94 servings. Selling 200 cups brings in $400, costs $245 and earns $155, a 38.75% margin. A $200 target needs ($135 + $200) / $1.45 = 231.1, rounded up to 232 servings.
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Frequently asked questions
Should my own time be a cost?
It is not a cash cost, so it is left out of the profit figure. If you want to know whether the stand is worth your afternoon, set the target profit to the amount you would need to earn for the time and see how many cups that requires.
What if a cup costs more than it sells for?
The contribution is negative and no number of servings covers the fixed costs. Break-even and target servings are then not shown. Raise the price, cut the ingredient cost or accept that the stand is a hobby rather than a business.
Why round servings up?
You cannot sell part of a cup, so any fraction of a serving still needs a whole one. Rounding up also guarantees that the answer covers the cost rather than falling a few cents short.