Liquor Cost Percentage Calculator

How to Use This Calculator

1. Enter the cost of your primary liquor ingredient in the "Liquor Cost" field
2. Enter the cost of all other ingredients (mixers, garnishes, etc.) in the "Other Ingredients Cost" field
3. Enter the final selling price of the drink in the "Total Drink Cost" field
4. Click the "Calculate" button to determine the percentage of the drink's cost that comes from the liquor

Why This Matters

The Liquor Cost Percentage is a crucial metric for bar managers and beverage developers:

• It helps identify drinks that may be overpriced or underpriced
• It allows for consistent pricing across similar drinks
• It helps optimize inventory by focusing on high-margin or high-volume items
• It provides data for menu engineering to maximize profitability

Example Scenario

Suppose you have a cocktail that costs $4 in spirits, $2 in mixers, and $1 in garnishes, selling for $8:

Liquor Cost Percentage = ($4 / $8) × 100% = 50%

This means 50% of your drink's revenue covers the cost of your primary spirits, while the other 50% covers mixers and profit.

Industry Standards

A typical range for liquor cost percentage in mixed drinks is 30-60%. Drinks below 30% might be too cheap, while those above 60% might need to be reevaluated for better profit margins.