A wine margin of 75% means your purchase price is 25% of your selling price. Many bar owners mistakenly calculate this by multiplying the purchase price by 75%. Here's the step-by-step method to calculate the correct selling price for wine with your desired margin.
The formula for wine price calculation
With a margin of 75%, you want your cost of goods to be 25% of your selling price. The formula is:
Selling price excl. VAT = Purchase price / (100% - Margin%) × 100
At 75% margin: Selling price excl. VAT = Purchase price / 0.25
💡 Example:
You buy a bottle of wine for €8.00 and want a 75% margin:
- Purchase price per bottle: €8.00
- Desired margin: 75%
- Selling price excl. VAT: €8.00 / 0.25 = €32.00
- Selling price incl. 21% VAT: €32.00 × 1.21 = €38.72
You sell the bottle for €38.72 incl. VAT
VAT on alcoholic beverages
Alcoholic beverages fall under the high VAT rate of 21% in the Netherlands. This means your selling price will be higher than for food (9% VAT).
⚠️ Note:
Always calculate your selling price excl. VAT first, then add the 21% VAT. Otherwise your margin won't be correct.
Calculating wine per glass
If you sell wine by the glass, you first need to calculate how many glasses come from one bottle:
- Standard bottle: 750ml
- Standard wine glass: 125ml or 150ml
- From 750ml you get 6 glasses of 125ml
- From 750ml you get 5 glasses of 150ml
💡 Example per glass:
Bottle of wine €8.00 purchase, 6 glasses of 125ml, 75% margin:
- Purchase price per glass: €8.00 / 6 = €1.33
- Selling price per glass excl. VAT: €1.33 / 0.25 = €5.33
- Selling price per glass incl. 21% VAT: €5.33 × 1.21 = €6.45
You sell a glass for €6.45
Common wine margins in hospitality
Wine margins vary by type of establishment:
- Restaurants: 70-80% margin
- Wine bars: 65-75% margin
- Cafés: 75-85% margin
- Hotels: 80-90% margin
A margin of 75% is therefore standard for most hospitality businesses. But here's the kind of thing you only learn after closing your first month at a loss: your margin calculations don't mean anything if you're not tracking them weekly.
💡 Practical example:
Restaurant with mixed wine list:
- House wine: €6 purchase → €29 selling (79% margin)
- Mid-range: €12 purchase → €58 selling (79% margin)
- Premium: €25 purchase → €120 selling (79% margin)
Consistent margin across all price ranges
Inventory management and wine losses
With wine by the glass you need to account for losses:
- Tastings for guests (1-2% of bottle)
- Spoilage from longer storage (5-10% with wine by the glass)
- Spilling and spillage (2-3%)
Add these losses to your purchase price for a more realistic cost price.
How do you calculate the selling price of wine? (step by step)
Determine your purchase price and desired margin
Note the purchase price of your wine and determine what margin you want to achieve. For wine, a 75% margin is standard in hospitality.
Calculate the selling price excluding VAT
Divide your purchase price by (100% minus your margin percentage). At 75% margin: purchase price / 0.25. This gives you the selling price excluding VAT.
Add VAT
Multiply your selling price excluding VAT by 1.21 for alcoholic beverages (21% VAT). This is your final price including VAT for the menu.
✨ Pro tip
Track your wine turns every 2 weeks by dividing bottles sold by average inventory. If you're turning less than 4 times monthly, you're tying up cash that could earn 75% margins elsewhere.
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
Why do I calculate excluding VAT first?
If you calculate directly with the price including VAT, your margin won't be correct. Your margin must be calculated on the price you actually receive, and that's excluding VAT.
Isn't a 75% margin too high for wine?
A 75% margin is standard in hospitality. You're paying for ambiance, service, glassware and expertise. Many restaurants even apply an 80% margin on wine.
What about wine by the glass versus by the bottle?
By the glass you can charge higher margins because you provide more service and run the risk of spoilage. First divide your bottle by the number of glasses, then calculate your margin.
Should I account for losses?
Yes, add 5-10% loss for wine by the glass to account for tastings, spoilage and spillage. This prevents your margin from being lower than planned.
Can I use different margins for different price ranges?
You can, but many restaurants use a consistent margin. More expensive wines can sometimes have a slightly lower margin to remain affordable.
How do I handle wine that doesn't sell quickly?
Mark it down after 3-4 weeks to avoid total loss. Better to sell at 60% margin than dump a full bottle. Track which wines move slowly and adjust your ordering.
What if my wine supplier offers volume discounts?
Factor volume discounts into your purchase price before calculating margins. A 10% discount on cases means you can either increase profit or offer more competitive pricing.
📚 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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