the pour cost formula every bar operator needs to know — with real examples for spirits, cocktails, and draft beer.
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calculate your pour cost.
enter your numbers below — the result updates instantly.
cost per oz
$0.83
cost per pour
$1.24
pour cost %
10.3%
on target — healthy margin
the formula
pour cost, explained.
the core formula
pour cost % = ingredient cost ÷ sell price × 100
pour cost is the percentage of a drink's menu price that goes toward the liquid inside it. if your ingredients cost $2.50 and you sell the drink for $12, your pour cost is 20.8%.
this is the single most important number in bar profitability. every drink you serve either makes money or loses it, and pour cost tells you which.
why it matters
a 5% swing in pour cost can be $30K+ per year.
for a bar doing $600K in annual beverage revenue, every percentage point of pour cost represents $6,000. if your pour cost drifts from 20% to 25% because of over-pouring, waste, or bad pricing, that's $30,000 in lost profit — often the difference between a good year and a bad one.
most operators don't calculate pour cost per drink. they look at overall liquor cost at the end of the month and hope it's close. that's too late.
step by step
how to calculate pour cost for any drink.
step 1
find your cost per ounce.
take the bottle cost and divide by the number of ounces in the bottle. a standard 750ml bottle is 25.36 oz.
example: a bottle of Tito's costs $22. $22 ÷ 25.36 oz = $0.87 per ounce.
for a 1-liter bottle (33.81 oz) at $28: $28 ÷ 33.81 = $0.83 per ounce.
always use your actual purchase price — not the listed retail price. if you buy through a distributor at volume pricing, use that number.
step 2
multiply by your pour size.
standard pours vary by drink type:
• neat/rocks spirit: 2 oz • cocktail base spirit: 1.5–2 oz • wine by the glass: 5–6 oz • draft beer: 16 oz pint
example: a 2 oz pour of Tito's at $0.87/oz = $1.74 ingredient cost.
for cocktails, add the cost of every ingredient — mixers, juices, garnishes, bitters. a margarita might be 2 oz tequila ($1.20) + 1 oz triple sec ($0.35) + 1 oz lime juice ($0.25) + garnish ($0.10) = $1.90 total ingredient cost.
step 3
divide by your sell price.
pour cost % = ingredient cost ÷ menu price × 100
vodka soda: $1.74 cost ÷ $10 price = 17.4% pour cost ✓ margarita: $1.90 cost ÷ $13 price = 14.6% pour cost ✓ glass of house wine: $2.50 cost ÷ $11 price = 22.7% pour cost ✓ craft draft beer: $2.80 cost ÷ $8 price = 35.0% pour cost ✗
that craft beer is above target. either negotiate a better keg price, increase the menu price to $9–10, or accept the lower margin and offset it with higher-margin cocktails.
reverse the formula
set price from target pour cost.
if you know your target pour cost, work backward:
sell price = ingredient cost ÷ target pour cost %
example: your old fashioned costs $2.40 in ingredients. you want a 20% pour cost. $2.40 ÷ 0.20 = $12.00 minimum menu price.
this is how you should price every drink on your menu. start with cost, set your target, and calculate the price — not the other way around.
benchmarks
what's a good pour cost?
by category
target ranges by drink type.
• spirits (neat/rocks): 14–18% • cocktails: 18–22% • wine by the glass: 25–30% • wine by the bottle: 30–40% • draft beer: 20–25% • bottled/canned beer: 24–28%
blended bar average target: 18–24%
high-volume bars with strong cocktail programs typically land at 18–20%. Beer-heavy bars will run 22–26%. if your blended pour cost is above 25%, you're leaving significant money on the table.
how to lower it
six ways to reduce pour cost.
1. use jiggers. free-pouring adds 15–25% variance. a jigger costs $5 and pays for itself in a single shift.
2. audit your recipes. write down exact specs for every cocktail. train bartenders to follow them.
3. renegotiate with distributors. most operators don't ask for volume pricing. you should — every quarter.
4. reprice your menu. ingredient costs change. your menu prices should too, at least twice a year.
5. track waste and comps. every spilled drink, every buyback — log it. you can't fix what you don't measure.
6. count inventory weekly. monthly counts let variance compound for 30 days before you catch it.
olldae. calculates pour cost automatically for every recipe.