The pour cost formulas
There are two versions of pour cost. One is for a single drink, used to set prices. The other is for a period, like a week or month, used to check what really happened behind the bar.
- Per drink:
Pour cost % = drink cost ÷ menu price × 100 - Drink cost:
cost per mL × mL poured, added up for every ingredient, wherecost per mL = bottle price ÷ bottle size (mL) - Price from a target:
Menu price = drink cost ÷ (target pour cost % ÷ 100) - Per period:
Pour cost % = (opening inventory + purchases − closing inventory) ÷ liquor sales × 100
Use the price you pay before tax and the menu price before tax. 1 oz = 29.5735 mL, so a 750 mL bottle holds about 25.4 oz.
Want the numbers without the maths? Use the free pour cost calculator.
Example (made-up prices)
Worked example: a single pour
A 750 mL bottle costs $30.00 and you pour 29 mL (about 1 oz). The menu price is $9.00 and your target is 20%.
| Step | Result |
|---|---|
| Cost per mL: 30.00 ÷ 750 | $0.04 |
| Cost per pour: 0.04 × 29 | $1.16 |
| Pour cost %: 1.16 ÷ 9.00 × 100 | 12.9% |
| Price at a 20% target: 1.16 ÷ 0.20 | $5.80 |
At $9.00 this pour runs at 12.9%, well under the 20% target. $5.80 is the lowest price that still hits 20%, not a recommended menu price: round to your own price steps and check local minimum-price rules (Ontario, for example, sets minimum prices for liquor in licensed venues).
Example (made-up prices)
Worked example: a cocktail
| Ingredient | Price / size | Poured | Cost |
|---|---|---|---|
| Gin | $36.00 / 750 mL | 44 mL | $2.11 |
| Vermouth | $18.00 / 750 mL | 22 mL | $0.53 |
| Bitters, garnish | allowance | – | $0.20 |
| Drink cost | $2.84 |
At a $14.00 menu price: 2.84 ÷ 14.00 = 20.3%. At a 20% target the price would be 2.84 ÷ 0.20 = $14.20. (Gin: 36 ÷ 750 × 44 = 2.112. Vermouth: 18 ÷ 750 × 22 = 0.528.)
Example (made-up figures)
Worked example: a month
Opening liquor inventory $4,200, purchases $1,800, closing inventory $3,900, liquor sales before tax $10,500.
(4,200 + 1,800 − 3,900) ÷ 10,500 × 100 = 2,100 ÷ 10,500 × 100 = 20.0%
If your recipes say the month should have run at 18% but the period number is 20%, the gap is product you paid for but didn't sell: spills, over-pours, comps that weren't rung in, or loss. A bar inventory sheet shows which bottles it came from.
Common mistakes
- Using tax-inclusive prices. If one side of the division includes tax and the other doesn't, the percentage is wrong. Use pre-tax on both sides.
- Only costing the spirit. Liqueurs, syrups, juice, bitters and garnish all cost money. A small allowance is better than zero.
- Assuming every millilitre is sold. Real pours lose some product to spillage and over-pouring. Dividing cost by a usable yield, for example 95%, gives a more honest number: 1.16 ÷ 0.95 = $1.22.
- Mixing up oz and mL. A 1.5 oz pour is about 44 mL, not 45 or 50. Pick one unit and convert once.
- Confusing pour cost with markup. A 20% pour cost means the price is 5 times the cost. That is a 400% markup, not a 20% one.
- Not updating bottle prices. Supplier prices change. Old costs make every drink look cheaper than it is.
Cost the whole menu at once
The Cocktail Costing Calculator spreadsheet costs every cocktail to the millilitre, including house syrups and batches, and suggests a menu price from your target pour cost for each category. It's an Excel file that also opens in Google Sheets and LibreOffice. US$12.
Get the Cocktail Costing CalculatorFAQ
What is a good pour cost percentage?
There is no single right number. It depends on your concept, prices and drink mix, and spirits, wine, draught and cocktails usually run at different levels. Set a target for each category and compare against your own past results rather than a single industry figure.
Is pour cost the same as liquor cost?
They are usually used to mean the same thing: what the alcohol cost you as a share of what you sold it for. Some bars use beverage cost to include wine, beer and non-alcoholic drinks.
Should I use the price before or after tax?
Before tax, on both sides. Use what you paid for the bottle before tax and the menu price before sales tax.
How do I find the price for a target pour cost?
Divide the drink cost by the target written as a decimal. A drink that costs $1.16 at a 20% target is 1.16 ÷ 0.20 = $5.80. Then round to your price steps and check any local minimum-price rules.
Why is my monthly pour cost higher than my recipe costs?
The period number includes everything that left the shelf: spills, over-pours, comps, staff drinks and loss. The recipe number assumes perfect pours. The gap between them is worth tracking.
About this page
Written by Jigger & Ledger, built by a Toronto hospitality operator. Example figures are made up for illustration and are not real supplier prices. This is general guidance for planning, not financial, tax or legal advice.