Bar costing guide

How to Calculate Cocktail Cost

A practical guide to costing a cocktail from bottle purchase prices, recipe measurements and selling price.

1. Cost each ingredient

Use: ingredient cost = (amount used ÷ container size) × purchase price.

A 700ml bottle costing €22 with a 40ml pour costs 40 ÷ 700 × €22 = €1.26 in the drink.

2. Add the recipe

Add every spirit, liqueur, mixer, syrup and other costed ingredient. If you want a more complete recipe cost later, add garnishes and wastage assumptions explicitly rather than hiding them inside the formula.

3. Calculate pour cost

Pour cost % = drink cost ÷ selling price × 100. A €2.40 cocktail sold for €12 has a 20% pour cost.

4. Calculate gross profit

Gross profit = selling price − drink cost. At €12 selling price and €2.40 cost, gross profit is €9.60 per drink. This is not net profit.

5. Use a target to suggest a price

Suggested price = drink cost ÷ target pour cost. At a 20% target, €2.40 ÷ 0.20 = €12.

6. Check the result against your actual menu

Pricing should also reflect demand, positioning, competition, VAT treatment, wastage, labour and other operating costs. A calculator is a decision aid, not a substitute for your full P&L.

Cost a cocktail now

Frequently asked questions

What is cocktail cost?

The sum of the cost allocated to each ingredient used in one drink.

What is pour cost?

The drink cost expressed as a percentage of its selling price.

Is gross profit the same as net profit?

No. Gross profit here only subtracts ingredient cost. Net profit would require other business expenses.