How to Calculate Pour Cost & Drink Margins
The pour cost formula, healthy targets for liquor, beer, and wine, and how to price a cocktail with confidence.
Pour cost is the percentage of a drink's price that goes to the ingredients. It's the fastest way to see whether a drink is making you money or quietly losing it.
The pour cost formula
Step 1: Find your cost per ounce
A 750 ml bottle holds about 25.4 oz. A $28 bottle of tequila costs about $1.10 per ounce.
Step 2: Cost out the recipe
| Margarita ingredient | Pour | Cost |
|---|---|---|
| Blanco tequila ($1.10/oz) | 2 oz | $2.20 |
| Orange liqueur ($1.30/oz) | 0.75 oz | $0.98 |
| Fresh lime juice | 1 oz | $0.35 |
| Agave syrup | 0.5 oz | $0.12 |
| Total | $3.65 |
Step 3: Divide by the price
Sold at $13, the margarita's pour cost is $3.65 ÷ $13 = 28%. Sold at $15, it drops to 24%.
Typical pour cost targets
| Category | Common target |
|---|---|
| Liquor / cocktails | 18–24% |
| Draft beer | 20–28% |
| Bottled beer | 24–30% |
| Wine by the glass | 28–35% |
Targets vary by market and concept. What matters most is knowing each drink's number and watching it over time.
Pricing a drink backward
For a $3.65 drink at a 22% target: $3.65 ÷ 0.22 = $16.59. Round to a menu price that fits your market.
Why margins slip
- Distributor prices go up and menu prices don't
- Free pouring instead of jiggers
- Unrecorded comps and spills
- Recipes that change from bartender to bartender
How NIX86 handles it
Build your drink and food recipes in Product Mix, and Menu Costing does the rest. Simply choose your target margin, and NIX86 automatically calculates your exact cost and suggests what to charge on your menu.
$74.99/month flat after your trial. No credit card to start.