Calculator Use
Managing a bar or restaurant requires precise control over inventory and pricing. This drink cost calculator app is designed to help professionals and home enthusiasts determine the exact cost of every pour. By inputting your purchase price and target margins, you can ensure your beverage program remains profitable.
Whether you are pricing a high-end whiskey or a complex craft cocktail, understanding the "pour cost" is the foundation of a successful business model.
- Bottle Purchase Price
- The total amount paid for a single bottle, including any applicable taxes or delivery fees.
- Bottle Size (ml)
- The total volume of the bottle. Standard spirits are usually 750ml, while liters are 1000ml.
- Pour Size (ml)
- The amount of liquid used in a single serving. A standard "shot" or neat pour is typically 45ml (1.5 oz) or 60ml (2 oz).
- Target Margin (%)
- The gross profit margin you want to achieve. Most bars aim for an 80% margin (which corresponds to a 20% beverage cost).
How It Works
When you use a drink cost calculator app, the logic follows a specific mathematical path. To find your suggested menu price, the app first determines the cost of a single unit of volume and kemudian applies your desired profit threshold.
Suggested Price = (Bottle Price / (Bottle Volume / Pour Volume) + Garnish) / (1 – Margin %)
- Cost per ml: Bottle price divided by total volume.
- Base Pour Cost: Cost per ml multiplied by the specific pour size.
- Total Drink Cost: Addition of garnishes, mixers, or labor costs to the base pour.
- Margin Adjustment: Dividing the total cost by the inverse of your margin percentage (e.g., dividing by 0.20 for an 80% margin).
Calculation Example
Example: You purchase a bottle of premium Gin for $40.00. The bottle is a standard 750ml. You serve a 50ml pour with a lime garnish that costs you $0.25. You want to maintain an 80% profit margin.
Step-by-step solution:
- Determine cost per ml: $40.00 / 750ml = $0.0533 per ml.
- Determine pour cost: 50ml × $0.0533 = $2.67.
- Add garnish: $2.67 + $0.25 = $2.92 Total Cost.
- Calculate menu price: $2.92 / (1 – 0.80) = $2.92 / 0.20.
- Result = $14.60 Suggested Price
Common Questions
What is a good beverage cost percentage?
In the bar industry, a standard beverage cost (COGS) ranges from 18% to 24%. This means your profit margin should be between 76% and 82%. Using a drink cost calculator app helps you identify which drinks are underperforming so you can adjust pricing accordingly.
Does this include labor costs?
Typically, a drink cost calculator focuses on prime cost (ingredients). Labor is usually accounted for in your overhead/margin. However, if a cocktail requires extensive prep time (like house-made syrups), you should add a "labor cost" into the garnish/misc field to ensure accuracy.
How do I handle spillage and waste?
Most bar managers add a "spillage buffer" of 5-10% to their bottle cost or slightly decrease the expected drinks per bottle. If a 750ml bottle should yield 15 pours of 50ml, many calculators assume 14.5 pours to account for minor drips and over-pouring.