The Neat Profit

What is Pour Cost and How to Calculate It

Pour cost is the single most important metric in bar management. Understand it, calculate it, and use it to price every drink profitably.

Understanding Pour Cost

Pour cost (also called liquor cost or beverage cost) is the ratio of what you paid for the ingredients in a drink to what you charged the guest for it. It's the bar equivalent of food cost in a kitchen—the lower the percentage, the higher your profit margin. Learn more about pricing cocktails for profit.

The Pour Cost Formula

There are two ways to express pour cost:

Cost of Ingredients / Menu Price = Pour Cost %

Example: A margarita uses 2 oz tequila ($1.20), 0.5 oz triple sec ($0.30), 1 oz lime juice ($0.15), and salt ($0.02). Total cost: $1.67. If you charge $9, pour cost = $1.67 / $9 = 18.6%.

To work backwards from a target pour cost to a menu price:

Ingredient Cost / Target Pour Cost % = Menu Price

Example: $1.67 / 0.20 = $8.35. Round to $9 for a clean menu price, giving you 18.6% pour cost.

Calculating Cost Per Ounce

To calculate pour cost, you first need cost per ounce for each spirit:

Bottle Cost / Total Ounces in Bottle = Cost Per Ounce

  • 750ml bottle = 25.3 oz
  • 1L bottle = 33.8 oz
  • 1.75L bottle = 59.2 oz

The Neat Profit automates this calculation. When you scan a distributor invoice, the system captures the bottle price, calculates cost per ounce, and applies it to every recipe that uses that spirit. See our guide on recipe costing for craft cocktails.

Industry Benchmarks

  • Overall bar pour cost: 18-24%
  • Well drinks: 15-18% (high volume, lower cost)
  • Call drinks: 20-22%
  • Premium cocktails: 22-30%
  • Ultra-premium spirits: 30-45% (high gross profit dollars)
  • Wine by the glass: 20-25%
  • Draft beer: 20-25%

Try our free Pour Cost Calculator to calculate pour cost for any drink. For a deeper dive, see our guide on cocktail pricing strategy for bars.

Frequently Asked Questions

What is pour cost and how do I calculate it?+
Pour cost is the ratio of ingredient cost to selling price. Formula: Ingredient Cost / Menu Price = Pour Cost %. For example, if a drink costs $2 to make and sells for $10, pour cost is 20%. The Neat Profit calculates this automatically for every recipe.
What is a good pour cost percentage?+
The industry standard is 20%. Premium items can sustain higher pour costs (30-40%) because gross profit dollars are still significant. Well drinks should target lower pour costs (15-18%) to maximize margin on high-volume items.
How do I calculate cost per ounce for spirits?+
Divide the bottle cost by total ounces in the bottle. A $30 750ml bottle (25.3 oz) costs $1.19 per ounce. The Neat Profit calculates this automatically from scanned invoices and applies it to every recipe.
Can I calculate pour cost for free?+
Yes. Use The Neat Profit's free Pour Cost Calculator at /tools/pour-cost-calculator, or sign up for a free account to get automatic pour cost calculations for every recipe on your menu.

Automate Your Pour Cost

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