Calculating cocktail margins is like checking your car's fuel efficiency – you need precise measurements to know if you're actually making money. Many bar owners underestimate their cocktail costs, losing money per drink without realizing it. Here's how to calculate the exact margin on your signature cocktails step-by-step.
What is pour cost for cocktails?
Pour cost is the cocktail version of food cost. It's the percentage of your selling price that goes to ingredients. With cocktails you count all ingredients: spirits, mixers, garnish, syrup and even ice.
💡 Example: Espresso Martini
Selling price: €12.00 (incl. 21% VAT)
- Vodka (5cl): €1.80
- Coffee liqueur (2cl): €0.90
- Espresso (1 shot): €0.25
- Sugar syrup (1cl): €0.15
- Garnish (3 coffee beans): €0.05
Total ingredient costs: €3.15
The formula for cocktail margin
Just like with food, you always calculate excluding VAT. For alcoholic beverages that's 21% VAT in the Netherlands.
Pour cost % = (Ingredient costs / Selling price excl. VAT) × 100
⚠️ Note:
Alcoholic beverages have 21% VAT, not 9% like food. Don't forget this in your calculation.
For the €12.00 Espresso Martini:
- Selling price excl. VAT: €12.00 / 1.21 = €9.92
- Pour cost: (€3.15 / €9.92) × 100 = 31.8%
What is a good pour cost?
Standard pour cost for cocktails sits between 18% and 25%. Anything above 30% gets expensive, below 15% might mean you're using too little alcohol or pricing too high.
💡 Benchmark per cocktail type:
- Classic cocktails (Negroni, Old Fashioned): 18-22%
- Premium cocktails with more expensive spirits: 22-28%
- Signature cocktails with special ingredients: 25-30%
- Simple mixed drinks: 15-20%
Calculate gross margin
Gross margin is what you keep after deducting ingredient costs. This needs to cover your staff, rent and other expenses.
Gross margin % = 100% - Pour cost %
For our Espresso Martini: 100% - 31.8% = 68.2% gross margin. That's €6.77 per cocktail to cover all other costs.
Calculate cost per ingredient
For accurate calculations you need to know what each cl costs. Divide the purchase price by the bottle size.
💡 Example: Vodka cost price
Premium vodka bottle: €45 for 70cl
- Cost per cl: €45 / 70cl = €0.64/cl
- For 5cl in cocktail: 5 × €0.64 = €3.20
Optimize signature cocktails
If your pour cost is too high, you've got three options:
- Raise the price: Simplest solution, but check if the market accepts it
- Cheaper spirits: Same quality for less money by switching suppliers
- Adjust portion: Slightly less alcohol, more mixer (but keep the taste!)
I've seen bars lose €200-400 monthly by not tracking their signature cocktail costs properly – a mistake that's easily avoided with weekly margin checks.
⚠️ Note:
Never change the taste of your signature cocktail to save costs. Guests will notice and won't come back.
How do you calculate cocktail margin? (step by step)
Gather all ingredients and prices
List all ingredients that go into your cocktail: spirits, mixers, syrup, garnish, even ice. Calculate the cost per cl by dividing the bottle price by the volume.
Add up total ingredient costs
Multiply the quantity of each ingredient by the cost per cl. Add everything up for the total cost of one cocktail.
Calculate the pour cost percentage
Divide total ingredient costs by your selling price excl. 21% VAT and multiply by 100. A good pour cost is between 18% and 25%.
✨ Pro tip
Calculate pour costs on your top 5 cocktails every 2 weeks – these represent 70% of your bar's profit. Track any ingredient that costs more than €0.50 per cocktail.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should ice be counted in cocktail costs?
Yes, but the costs are minimal (about €0.02-0.05 per cocktail). For accurate calculations you count everything that goes in the glass.
What if my signature cocktail has a pour cost above 30%?
Then you're probably losing money on that cocktail. Raise the price, find cheaper ingredients with the same quality, or adjust the portion slightly.
Does pour cost differ between different types of bars?
Yes, cocktail bars can handle 22-28%, while café-bars often need to stay under 20%. It depends on your target audience and price level.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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