Drink Pricing Calculator - Liquor Cost Calculator

Calculate ingredient costs and set profitable drink menu prices

Add Your Ingredients

INGREDIENT	AMOUNT	PACKAGE SIZE	PURCHASE PRICE ($)	COST ($)

Set Margins & Pricing

TOTAL INGREDIENTS COST

$0.00

MARKUP PERCENT (%)

MARKUP AMOUNT ($)

RECOMMENDED MENU PRICE

INCLUDE TAX?

TAX RATE (%)

FINAL PRICE + TAX

$0.00

Cost Breakdown

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What you can do with Menubly Drink Pricing Calculator?

Menubly Drink Pricing Calculator is a specialized pour cost calculator designed to help restaurant or bar owners, bartenders, and beverage managers optimize their drink pricing and maximize profitability. This accurate tool helps you manage your liquor cost percentage and make sure you achieve your ideal pour cost goal. With this calculator, you can:

Accurately calculate the cost of goods for each ingredient in your cocktails and drinks
Determine the ideal selling price for your beverages using the calculator to find optimal pricing
Analyze the profitability of your drink menu items and improve liquor cost management
Identify expensive ingredients that may be affecting your margins
Calculate bottle cost and product pricing with tax included for transparent menu pricing
Efficiently manage your backbar inventory and reduce variance

How to use our Drink Pricing Calculator?

Follow these simple steps to get the most out of our Drink Pricing Calculator:

1. Add Ingredients

For each product, provide:

Ingredient name – Enter the specific beverage ingredient (e.g., Vodka, Simple Syrup, Lime Juice)
Amount – Enter how much of this ingredient is used in a single drink, selecting the appropriate unit of measurement (ounce, liter, milliliter, dash, or unit). Consider the number of ounces per serving
Package Size – Enter the total bottle size of the package you purchased, selecting the appropriate unit (ounce, liter, milliliter, gallon, or unit). This works for bottles, kegs, and other container types
Purchase Price ($) – Enter the total price paid for the entire package of the ingredient

Click “Add ingredient” button if you need to add more components to your drink recipe. This selection process helps staff efficiently track all recipe components.

2. Review Calculations

Once all inputs are entered, using the calculator will automatically display:

Total ingredient cost for the drink
Recommended menu price based on your markup settings and ideal pour cost

The default markup percentage is set to 20%, but you can adjust this to match your restaurant or bar’s pricing strategy. Make sure to set targets that align with industry standards for liquor cost percentage. You can alternatively set a specific markup amount in dollars if you prefer fixed margins. Toggle the “Include Tax?” option if you want to display prices with tax included on your menu.

3. Review the Ingredient Summary

On the right-hand side, you’ll find a “Review Your Summary” section
This includes a pie chart representing the proportion of each ingredient’s cost in the drink
Use this visual aid to quickly identify which ingredients are contributing most to your drink cost
This helps you target high-cost ingredients for potential substitutions or adjustments
The expertise built into this management platform helps reduce variance and improve customer satisfaction

Drink Pricing Calculator / Beverage Cost Calculator FAQs

How to calculate the price of a drink?

Calculating the price of a drink involves several key factors:

Determine your ingredient costs: Add up the cost of all ingredients used in the drink. Our calculator simplifies this by letting you enter each ingredient's package price and the specific amount used in the drink.
Factor in overhead costs: Beyond just ingredients, consider labor, rent, utilities, and other operational expenses. Most bars aim for a beverage cost percentage of 15-25%.
Apply your target markup: Most successful bars maintain a profit margin of 75-80%, which translates to a markup of 4-5 times the cost. Our calculator defaults to a 20% cost (80% margin) but allows you to adjust this.
Consider your market: Research competitor pricing in your area and consider what your specific type of bar can reasonably charge.
Account for taxes: Toggle on our tax calculator to ensure your final price includes applicable sales tax if you want to advertise tax-inclusive pricing.

For more comprehensive guidance on pricing within your overall business strategy, check out our guide on creating a thorough bar business plan.

How to price cocktails?

Pricing cocktails requires balancing profitability with customer perception of value:

Calculate base cost: Use our calculator to add all ingredients (spirits, mixers, garnishes) with their exact amounts.
Consider complexity and prep time: More complex cocktails with housemade ingredients or elaborate preparation justify higher pricing.
Evaluate your positioning: High-end cocktail bars can command premium prices, while a sports bar might need more competitive pricing.
Use strategic pricing psychology: Price points ending in .95 or .99 can make cocktails seem more affordable, while round numbers like $12 or $14 often convey quality.
Create tiered pricing: Organize your menu with entry-level, mid-range, and premium cocktail options.

The initial investment in quality spirits and ingredients can be substantial. Learn more about startup costs in our article about how much it costs to open a bar.

Specialty establishments like wine bars will have different pricing strategies compared to traditional cocktail bars or pubs, so adjust your approach accordingly.

How to calculate the beverage cost?

Beverage cost is a critical metric for bar profitability. Here's how to calculate it:

Individual drink cost: Use our calculator to determine the precise cost of each drink by entering:
- Each ingredient name
- The amount used in the drink
- The package size you purchase
- The purchase price of the package
Calculate beverage cost percentage: The formula is:
Beverage Cost Percentage = (Total Ingredient Cost ÷ Selling Price) × 100
For example, if a cocktail costs $3 to make and sells for $12, the beverage cost percentage is 25%.
Monitor pour costs: Track actual usage against theoretical usage to identify over-pouring or waste.
Set targets by category: Different beverages have different standard cost percentages:
- Draft beer: 15-20%
- Bottled beer: 20-25%
- Well drinks: 15-20%
- Call drinks: 18-22%
- Premium drinks: 22-28%
- Signature cocktails: 18-24%
Analyze regularly: Conduct regular inventory and cost analysis to catch problems early.

For more insights on maximizing profitability when opening a bar, including choosing the right bar name that appeals to your target market, explore our comprehensive guides.

If you're opening a specialty venue, we also have specific naming guides for establishments like sports bars to help you establish a distinctive brand that supports your pricing strategy.

What is a pour cost calculator?

A pour cost calculator is software that determines the exact cost of ingredients in each drink you serve. This tool calculates how much cocktails cost to make by breaking down individual ingredient expenses, helping you set profitable menu prices.

Read below for an intro to how this works: the calculator makes everyday tasks easier by eliminating manual calculations, giving you less time crunching numbers and more time helping customers. Unlike the largest inventory platform for restaurants, pour cost calculators focus specifically on drink costing. Many bars use backbar's free tools alongside these calculators, though a dedicated platform for mobile and web or comprehensive bar inventory platform for mobile offers more features.

What is an ideal liquor cost percentage?

An ideal liquor cost percentage typically ranges between 18-25% for most restaurants and bars. High-volume bars often target 15-20%, while craft cocktail establishments might operate at 20-25% due to premium ingredients.

Using software to track this percentage means less time crunching numbers and more time helping your business grow. The calculator makes everyday tasks easier by automatically computing these percentages. Many establishments use backbar's free resources combined with costing tools to monitor liquor costs. While platform for restaurants and bars solutions offer comprehensive tracking, focused pour cost management helps achieve ideal percentages without complexity.

What is Menubly?

Menubly is a tool that allows restaurants and food businesses to easily create a Free mini website. This mini website features an interactive digital menu and a hub for all your essential links, including Google Maps direction, social media profiles, and online ordering platforms, and more.

By placing this mini website link in your Instagram bio or other social media profiles, your customers can easily access and discover everything about your restaurant with just one click.

Who is Menubly for?

Menubly is ideal for any type of food business looking to boost their online presence and get more customers. Whether you run a restaurant, cafe, bar, bakery, food truck, brewery, or ghost kitchen, Menubly provides the tool to help you showcase your offerings online and get more customers.