Drink Pricing Calculator - Beverage Cost Calculator

ADD YOUR INGREDIENTS

INGREDIENT ? Enter the name of the drink ingredient (e.g., Vodka, Simple Syrup, Lime Juice).	AMOUNT ? Enter the quantity of this ingredient used in a single drink. Select the appropriate unit of measurement.	PACKAGE SIZE ? Enter the total quantity in the package as purchased. For example, a standard bottle of liquor might be 750 ml.	PURCHASE PRICE ($) ? Enter the total price you paid for the entire package of this ingredient.	INGREDIENT COST ($) ? This shows the calculated cost of the ingredient used in this drink. It's determined by: (Purchase Price / Package Size) × Amount.

SET MARGINS & PRICING

TOTAL INGREDIENTS COST ($)

$ 0.00

MARKUP PERCENT (%)

MARKUP AMOUNT ($)

RECOMMENDED MENU PRICE ($)

INCLUDE TAX?

TAX (%)

PRICE + TAX ($)

$ 0.00

REVIEW YOUR SUMMARY

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What you can do with Menubly Drink Pricing Calculator?

Menubly Drink Pricing Calculator is a specialized tool designed to help bar owners, bartenders, and beverage managers optimize their drink pricing and maximize profitability. With this calculator, you can:

Accurately calculate the cost of each ingredient in your cocktails and drinks
Determine the ideal selling price for your beverages
Analyze the profitability of your drink menu items
Identify expensive ingredients that may be affecting your margins
Calculate prices with tax included for transparent menu pricing

How to use our Drink Pricing Calculator?

Follow these simple steps to get the most out of our Drink Pricing Calculator:

1. Add Ingredients

For each ingredient, provide:
- Ingredient name – Enter the specific beverage ingredient (e.g., Vodka, Simple Syrup, Lime Juice)
- Amount – Enter how much of this ingredient is used in a single drink, selecting the appropriate unit of measurement (ounce, liter, milliliter, dash, or unit)
- Package Size – Enter the total size of the package you purchased, selecting the appropriate unit (ounce, liter, milliliter, gallon, or unit)
- Purchase Price ($) – Enter the total price paid for the entire package of the ingredient
Click “Add ingredient” button if you need to add more components to your drink recipe

2. Review Calculations

Once all inputs are entered, the calculator will automatically display:
- Total ingredient cost for the drink
- Recommended menu price based on your markup settings
The default markup percentage is set to 20%, but you can adjust this to match your bar’s pricing strategy
You can alternatively set a specific markup amount in dollars if you prefer fixed margins
Toggle the “Include Tax?” option if you want to display prices with tax included on your menu

3. Review the Ingredient Summary

On the right-hand side, you’ll find a “Review Your Summary” section
This includes a pie chart representing the proportion of each ingredient’s cost in the drink
Use this visual aid to quickly identify which ingredients are contributing most to your drink cost
This helps you target high-cost ingredients for potential substitutions or adjustments

By using the Menubly Drink Pricing Calculator, you’ll be able to price your beverages competitively while ensuring healthy profit margins for your establishment.

Drink Pricing Calculator / Beverage Cost Calculator FAQs

How to calculate the price of a drink?

Calculating the price of a drink involves several key factors:

Determine your ingredient costs: Add up the cost of all ingredients used in the drink. Our calculator simplifies this by letting you enter each ingredient's package price and the specific amount used in the drink.
Factor in overhead costs: Beyond just ingredients, consider labor, rent, utilities, and other operational expenses. Most bars aim for a beverage cost percentage of 15-25%.
Apply your target markup: Most successful bars maintain a profit margin of 75-80%, which translates to a markup of 4-5 times the cost. Our calculator defaults to a 20% cost (80% margin) but allows you to adjust this.
Consider your market: Research competitor pricing in your area and consider what your specific type of bar can reasonably charge.
Account for taxes: Toggle on our tax calculator to ensure your final price includes applicable sales tax if you want to advertise tax-inclusive pricing.

For more comprehensive guidance on pricing within your overall business strategy, check out our guide on creating a thorough bar business plan.

How to price cocktails?

Pricing cocktails requires balancing profitability with customer perception of value:

Calculate base cost: Use our calculator to add all ingredients (spirits, mixers, garnishes) with their exact amounts.
Consider complexity and prep time: More complex cocktails with housemade ingredients or elaborate preparation justify higher pricing.
Evaluate your positioning: High-end cocktail bars can command premium prices, while a sports bar might need more competitive pricing.
Use strategic pricing psychology: Price points ending in .95 or .99 can make cocktails seem more affordable, while round numbers like $12 or $14 often convey quality.
Create tiered pricing: Organize your menu with entry-level, mid-range, and premium cocktail options.

The initial investment in quality spirits and ingredients can be substantial. Learn more about startup costs in our article about how much it costs to open a bar.

Specialty establishments like wine bars will have different pricing strategies compared to traditional cocktail bars or pubs, so adjust your approach accordingly.

How to calculate the beverage cost?

Beverage cost is a critical metric for bar profitability. Here's how to calculate it:

Individual drink cost: Use our calculator to determine the precise cost of each drink by entering:
- Each ingredient name
- The amount used in the drink
- The package size you purchase
- The purchase price of the package
Calculate beverage cost percentage: The formula is:
Beverage Cost Percentage = (Total Ingredient Cost ÷ Selling Price) × 100
For example, if a cocktail costs $3 to make and sells for $12, the beverage cost percentage is 25%.
Monitor pour costs: Track actual usage against theoretical usage to identify over-pouring or waste.
Set targets by category: Different beverages have different standard cost percentages:
- Draft beer: 15-20%
- Bottled beer: 20-25%
- Well drinks: 15-20%
- Call drinks: 18-22%
- Premium drinks: 22-28%
- Signature cocktails: 18-24%
Analyze regularly: Conduct regular inventory and cost analysis to catch problems early.

For more insights on maximizing profitability when opening a bar, including choosing the right bar name that appeals to your target market, explore our comprehensive guides.

If you're opening a specialty venue, we also have specific naming guides for establishments like sports bars to help you establish a distinctive brand that supports your pricing strategy.

What is Menubly?

Menubly is a tool that allows restaurants and food businesses to easily create a Free mini website. This mini website features an interactive digital menu and a hub for all your essential links, including Google Maps direction, social media profiles, and online ordering platforms, and more.

By placing this mini website link in your Instagram bio or other social media profiles, your customers can easily access and discover everything about your restaurant with just one click.

Who is Menubly for?

Menubly is ideal for any type of food business looking to boost their online presence and get more customers. Whether you run a restaurant, cafe, bar, bakery, food truck, brewery, or ghost kitchen, Menubly provides the tool to help you showcase your offerings online and get more customers.