Enter the cost of ingredients and the sale price of the drink into the calculator to determine the pour cost percentage. This calculator helps in understanding the profitability of a drink by calculating the cost percentage of the drink’s ingredients relative to its sale price.
Pour Cost Formula
The following formula is used to calculate the pour cost percentage.
PC = (C / SP) * 100
Variables:
- PC is the pour cost percentage (%)
- C is the cost of ingredients ($)
- SP is the sale price of the drink ($)
To calculate the pour cost percentage, divide the cost of ingredients by the sale price of the drink and then multiply by 100 to get the percentage.
What is Pour Cost?
Pour cost is a term used in the hospitality industry, particularly in bars and restaurants, to describe the cost of the ingredients used to make a drink as a percentage of the sale price of that drink. It is a critical measure for understanding the profitability of each drink sold and is used to set appropriate pricing and manage inventory effectively.
How to Calculate Pour Cost?
The following steps outline how to calculate the Pour Cost.
- First, determine the cost of ingredients (C) used to make the drink.
- Next, determine the sale price (SP) at which the drink is sold.
- Use the formula from above = PC = (C / SP) * 100.
- Finally, calculate the Pour Cost (PC) as a percentage.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Cost of ingredients (C) = $1.50
Sale price of the drink (SP) = $5.00