Drink Cost Calculator

How this tool works

Enter your drink name and add each component — spirit, mixer, garnish — with its measure, bottle size and bottle cost. Set your target GP% and VAT rate to get your recommended selling price.

Drink Details
Components
Component Measure Unit Bottle Size Bottle Cost Waste % Line Cost
Pricing & Margins
70%

Industry benchmark: 65–75% GP for drinks.

%

Licensed premises: typically 20%

Line Cost per Component

Line Cost = (Measure ÷ (1 − Waste% ÷ 100)) ÷ Bottle Size × Bottle Cost. The waste factor is applied before dividing by bottle size to ensure you cost the gross amount needed.

Cost per Serve

The sum of all component line costs divided by the number of serves.

GP% and Selling Price

Selling Price ex VAT = Cost per Serve ÷ (1 − Target GP%). A GP of 70% means for every £1 of revenue, 70p is gross profit before labour and overheads. The wet-led benchmark of 65–75% is higher than food because drinks have lower preparation labour costs.

VAT on Drinks

Alcoholic and soft drinks served in licensed premises in the UK are standard rated at 20%. Cold, non-alcoholic drinks served for takeaway may qualify for 0% — confirm with your accountant.

This calculator provides estimates based on the figures you enter. Always review your actual supplier invoices and confirm VAT obligations with your accountant. JWBIZ Ltd accepts no liability for decisions made on the basis of this tool.