Beverage Cost Calculator
Build a drink recipe ingredient by ingredient. Enter each component (spirit, mixer, juice, syrup, cream, garnish, cup, straw) with its unit cost. The calculator totals your drink cost, shows the cost as a percentage of your selling price, and suggests the selling price needed to hit your target cost percentage.
Drink ingredients
| Ingredient | Quantity | Unit cost | |
|---|---|---|---|
How to use this tool
- 1Add each ingredient in the drink - include spirits, mixers, ice, fruit, syrups, garnish, and the cost of the cup, straw, or lid if applicable.
- 2For each ingredient, enter the cost per standard unit (per ml, per g, per piece) and the quantity used in this drink.
- 3Enter your current or planned selling price to see the drink cost percentage at that price.
- 4Enter your target drink cost percentage - most bars target 18-25% for cocktails, 15-20% for coffee drinks.
- 5Read the suggested selling price to hit your target, and the profit per drink at your chosen price.
Formula used
Example
Tequila: 0.81. Triple sec: 0.26. Lime juice: 0.24. Garnish: 0.15. Total drink cost: 1.46. At a selling price of 12.00, cost percentage is 12.2% - low, leaving strong margin. If the bar targets 20%, suggested price is 7.30. The bar is actually pricing above cost-target, which is fine for a premium positioning.
Coffee: 1.17. Milk: 0.22. Cup: 0.12. Total: 1.51. At 4.50 selling price, cost percentage is 33.6% - high for coffee. At a 20% target, suggested price is 7.55. This highlights the gap between commodity ingredient cost and market price tolerance. Many cafes accept 25-35% for coffee because the volume is high and labor per drink is low.
Common use cases
- Costing a new cocktail menu before launch to ensure prices are set correctly from the start
- Identifying high-cost drinks that are underpriced relative to their ingredient cost
- Comparing the cost of house-made versus bought-in mixers, syrups, or juices
- Recalculating drink costs after a supplier price change to decide whether to reprice
- Training bar staff to understand the relationship between pour size, ingredient cost, and selling price
Common mistakes
- Not including consumables like cups, straws, lids, napkins, and garnish in drink cost - these add 10-20% to apparent cost.
- Using bottle retail price instead of your actual wholesale or trade price from the invoice.
- Ignoring spillage and over-pouring - actual pour cost runs 5-10% above the theoretical cost for most bars. Build this into your cost target.
- Setting the same cost percentage target for all beverages - cocktails, wine, beer, and coffee all have different industry benchmarks.
Frequently asked questions
What drink cost percentage should I target?
Industry benchmarks vary by category: cocktails typically target 18-25%; beer 20-30%; wine 30-40% (by the glass); coffee 15-25%; non-alcoholic drinks 10-20%. The lower the cost percentage, the higher the profit margin per drink. Coffee in particular has low ingredient cost relative to market price, which is why cafes can be profitable with relatively few covers.
How do I calculate the cost per ml of a spirit?
Take the price of the bottle and divide by the volume in ml. A 750ml bottle of tequila at 28.00 costs 28/750 = 0.0373 per ml. For a 45ml shot, the cost is 0.0373 x 45 = 1.68. Use this same method for any liquid ingredient.
Should I include ice in the drink cost?
Ice cost is typically very low (a few cents per drink) and is often excluded or included as a small fixed overhead per drink. However, if you are paying for ice delivery or using an expensive ice machine, it is worth including a per-drink ice cost to ensure it is tracked.
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