Pour cost (or beverage cost percentage) is the ratio of ingredient cost to the selling price of a drink. For example, if a cocktail costs $2.50 in ingredients and sells for $12, the pour cost is ~21%. The industry benchmark for a well-run bar is 18%–24% pour cost, which translates to a 76%–82% profit margin. Monitoring pour cost helps you identify over-pouring, theft, or pricing issues before they hurt your bottom line.

Most successful bars and restaurants target a 70%–80% gross profit margin on cocktails. Premium venues with higher overhead may aim for 75%–85%. Beer and wine typically have lower margins (60%–70%), while craft cocktails using premium spirits can command the highest margins. Our calculator defaults to 75% as a balanced industry target.

Divide the bottle's purchase price by its total fluid ounces. A standard 750ml bottle contains 25.36 oz. So a $30 bottle yields $30 ÷ 25.36 ≈ $1.18/oz. Use our built-in Bottle Cost Converter above to do this instantly. Pro tip: always calculate based on wholesale or distributor pricing, not retail shelf price.

Industry estimates suggest 3%–8% for well-managed bars. Factors include over-pouring during free-pour service, spillage during busy shifts, returned drinks, and tasting portions. If you use jiggers consistently, 3%–5% is reasonable. For high-volume nightclubs with free-pouring, 8%–12% may be more realistic. Start with 5% and adjust based on your inventory audits.

Absolutely. While ice and garnish seem negligible per drink, they add up. A single lime wedge costs about $0.08–$0.15, quality ice $0.05–$0.12 per serving, and a branded napkin $0.03–$0.08. For a bar serving 200 cocktails per night, that's $32–$70 in garnish costs alone. Our calculator includes these line items so your pricing reflects true total cost.

Well cocktails (using house spirits) can often be priced at a higher margin (78%–82%) because the absolute ingredient cost is low. Premium cocktails using top-shelf spirits may need a slightly lower margin (68%–75%) to keep the final price within customer expectations while still delivering strong dollar profit. For example, a $10 well drink with $2 cost earns $8 profit (80% margin), while a $16 premium drink with $5 cost earns $11 profit (69% margin) — more total dollars despite lower margin percentage.

A common quick-reference rule is to multiply the total ingredient cost by 4x to 5x to set the menu price. At 4x, you achieve a 75% margin; at 5x, an 80% margin. For example, $2.50 cost × 4 = $10 (75% margin), × 5 = $12.50 (80% margin). This heuristic works well for mid-range bars but may need adjustment for ultra-premium spirits or high-overhead venues.

Recalculate at least quarterly, and ideally whenever your liquor distributor changes prices. Seasonal ingredients (fresh fruit, herbs) fluctuate in price, and spirit costs can shift with tariffs or supply chain changes. Establishments that do weekly inventory often update costs monthly. Using this calculator regularly ensures your menu prices always reflect current costs and target margins.