How to Calculate Pour Cost: Formula and Examples

Pour cost is beverage cost used divided by beverage sales for a matching period and scope. It is a ratio, not a diagnosis.

Period formula: (beginning inventory + purchases minus ending inventory) / sales. Per-drink formula: (bottle cost / ounces per bottle) x pour ounces, then divide by drink price. Run the numbers at pour cost calculator.

For a consistent period and scope: beverage cost used = beginning inventory + purchases + transfers in − transfers out − ending inventory. If documented credits or returns are material, include them consistently as reductions to purchases or as a separate adjustment.

Pour cost percentage = beverage cost used ÷ beverage sales × 100. Revenue and inventory cost must cover the same dates, locations, and beverage categories. pour cost and cost of goods used own those two numbers. pour cost band is the target range you compare them to.

1. Choose a closed period and a consistent beverage scope (locations and categories).
2. Record beginning inventory cost at the period start valuation.
3. Add purchases and transfers in; subtract transfers out and ending inventory cost.
4. Divide beverage cost used by beverage sales for the same period, then multiply by 100.
5. Compare the result to prior periods and investigate large moves before changing menu prices.

Per-drink pour cost uses the bottle, not the period: (bottle cost / ounces per bottle) x pour ounces, then divide by drink price. Example only: a $28 bottle with 25.4 ounces and a 1.5 ounce pour costs $1.65. Sold at $12, pour cost percent is 13.8%. Run the same math at pour cost calculator.

Liquor example (example only): beginning $800, purchases $400, ending $700, liquor sales $2,500. Cost used is $500. Pour cost is 500 / 2500 = 20%. Beer example (example only): beginning $300, purchases $200, ending $250, beer sales $1,000. Cost used is $250. Pour cost is 25%. Wine example (example only): beginning $600, purchases $250, ending $550, wine sales $1,500. Cost used is $300. Pour cost is 20%. These are teaching numbers, not venue benchmarks.

Liquor, beer, and wine often run different healthy ranges. Blending them into one pour cost can hide a cocktail problem inside a beer-heavy mix. This page does not publish a benchmark percent for every room. Document your own band by category.

Recipe cost on a single drink is not the same as period pour cost. Recipe cost uses theoretical ounces. Period pour cost uses what actually left the shelf. Both are useful. Confusing them creates arguments that cannot be won.

A pour-cost spike can be a supplier increase, not over-pouring. Keep invoice unit prices current. ExactPour invoice intake and price watching exist so a forty-cent bump on a well spirit shows up the week it lands.

Correct menu prices in small steps on high-velocity drinks first. See the public calculators and the cocktail pricing guide when you want the arithmetic before you reprint.

For one menu item, add the cost of each ingredient quantity. Ingredient cost equals quantity used multiplied by cost per matching unit. Recipe cost percentage equals recipe cost ÷ menu price × 100.

1. List each ingredient quantity in a single unit system.
2. Multiply quantity by current cost per matching unit.
3. Sum ingredient costs to get recipe cost.
4. Divide recipe cost by menu price and multiply by 100 for recipe cost percentage.

Pour cost is a ratio, not a diagnosis. Changes may reflect purchase prices, product mix, menu prices, promotions, comps, waste, measurement error, or unrecorded movement. Taxes and tips are normally excluded from beverage sales, but the accounting policy should be explicit and consistent.