Calculator Use
The drink cost calculator is an essential tool for bar managers, restaurateurs, and home mixologists looking to manage their beverage program's profitability. By entering the purchase price of your spirits and the exact measurements used in your recipes, you can determine the precise cost of every cocktail or pour served. This ensures your pricing strategy aligns with your business goals.
Whether you are pricing a simple highball or a complex craft cocktail, this tool accounts for both the primary ingredient and additional expenses like garnishes, mixers, and straws.
- Bottle Price
- The total cost you paid for the full bottle of alcohol, including taxes and delivery if applicable.
- Bottle Volume
- The total volume of the bottle (common sizes are 750ml, 1 liter, or 1.75 liters).
- Amount per Drink
- The specific amount of that alcohol used in a single serving (e.g., 1.5 oz or 45ml).
- Target Margin
- The percentage of the final price you wish to keep as gross profit.
How It Works
To find your ideal selling price, the drink cost calculator uses a standard industry formula for pour cost and markup. The calculation follows these steps:
Price = (Unit Cost + Extra Costs) / (1 – Target Margin)
- Unit Cost: Calculated by dividing the bottle price by the total volume.
- Pour Cost: The liquid cost based on the specific amount poured into the glass.
- Markup: The inverse of your target margin used to determine the final retail price.
Calculation Example
Example: Pricing a standard Gin & Tonic using a mid-range gin.
Step-by-step solution:
- Bottle Price = $30.00 (750ml size)
- Pour Size = 50ml
- Additional Costs (Tonic, lime, ice) = $0.75
- Desired Margin = 75%
- Cost per ml = $30 / 750 = $0.04
- Liquid Cost = $0.04 * 50 = $2.00
- Total Cost = $2.00 + $0.75 = $2.75
- Suggested Selling Price = $2.75 / (1 – 0.75) = $11.00
Common Questions
What is a good pour cost for a bar?
In the hospitality industry, a standard "pour cost" (the cost of the drink relative to its selling price) usually falls between 18% and 24%. This is equivalent to a gross profit margin of 76% to 82%.
Should I include garnish costs in the drink cost calculator?
Absolutely. While a single lime wedge or olive seems inexpensive, these costs add up over hundreds of drinks. Including an average "extra cost" for garnishes and napkins ensures your margins stay accurate.
How do I handle "spillage" in my calculations?
Spillage and waste typically account for 5% to 10% of inventory. Many bar managers add a small "buffer" to the ingredient cost or slightly increase their target margin to account for these inevitable losses.