Bar Profit Margin Calculator
Calculate liquor cost per pour, drink ingredient cost, beverage cost percentage, gross margin, markup, and estimated profit after the expenses you enter.
US dollars. Use your actual bottle costs and recipe quantities for the most useful estimates.
Your results
Enter values and click Calculate.
Gross profit subtracts beverage ingredients only. Estimated profit additionally subtracts entered variable costs, fees, and allocated overhead; it is not necessarily accounting net profit. Pours are theoretical equivalents, not necessarily complete servings.
Calculation breakdown
| Calculation | Value |
|---|---|
| Usable bottle volume | — |
| Pour size | — |
| Liquor cost | — |
| Mixers and garnishes | — |
| Ingredient cost per drink | — |
| Sales quantity | — |
| Processing fees per drink | — |
| Other variable cost per drink | — |
| Total variable costs including ingredients and fees | — |
| Fixed overhead | — |
| Profit after entered costs | — |
How to use the Bar Profit Margin Calculator
Select a mode, enter your selling price or target margin, and specify how many drinks you expect to sell. Enter your liquor bottle’s cost and size, the pour size, and expected spillage. Add mixers, garnishes, and optional expenses. Click Calculate to see drink-level costs and projected profit.
Liquor cost per drink
Liquor cost = Bottle cost × Pour volume ÷ Usable bottle volume
The calculator converts US fluid ounces to milliliters before dividing. Usable volume equals bottle size multiplied by (1 − waste percentage). A 750 mL bottle provides about 16.91 theoretical 1.5-US-fl-oz pours before waste.
Beverage cost and gross margin
Beverage cost % = Ingredient cost ÷ Selling price × 100
Gross margin % = (Selling price − Ingredient cost) ÷ Selling price × 100
If a drink costs $3 in ingredients and sells for $12, its beverage cost percentage is 25% and gross margin is 75%. Gross margin does not include labor, processing fees, rent, or other expenses entered separately.
Target selling price
Target gross-margin price = Ingredient cost ÷ (1 − Target margin)
For a target margin after all entered costs, the tool also includes variable expenses, fixed fees, allocated overhead, and the percentage processing fee. Target prices are rounded up to the next cent.
Estimated profit
Estimated profit = Sales revenue − Ingredient costs − Other variable costs − Processing fees − Entered overhead
Use costs allocated to the same sales period as the quantity entered. Avoid including the same wage or supply expense both per drink and in overhead. Actual business profit can differ because taxes and unentered costs are excluded.
Frequently asked questions
What is a bar profit margin calculator?
It estimates ingredient cost, beverage cost percentage, gross profit margin, markup, and profit after costs you enter for a drink and selected sales volume.
How do I calculate liquor cost per pour?
Divide bottle cost by estimated pours per bottle, accounting for serving size and waste.
What is beverage cost percentage?
Ingredient cost divided by the drink’s selling price, multiplied by 100.
What is the difference between gross margin and markup?
Gross margin divides gross profit by selling price; markup divides it by ingredient cost.
How many pours are in a 750 mL bottle?
About 16.91 theoretical 1.5-US-fluid-ounce pours before spillage or other losses.
Can I include waste?
Yes. Enter the share of bottle volume lost to spillage or other unusable liquor. The calculator increases cost per serving accordingly.
Does the calculator include labor?
Only if you enter allocated labor in other variable costs or overhead. Do not count it twice.
Does it include payment processing fees?
Yes. You can enter a percentage of selling price and a fixed fee allocated per drink.
Can I find the price for a target margin?
Yes. Choose target gross margin or target margin after entered costs from the calculation mode menu.
Is estimated profit the same as net income?
Not necessarily. The tool only subtracts entered costs, so taxes and other expenses may be missing.