Pour cost (ingredient cost ÷ menu price) tells a cafe whether a drink is priced for profit. Most shops target 18–24% on coffee drinks.
Format as a percentage. Lower is better margin; compare against your target.
The example
A latte costs $0.85 in milk, beans, and cup, and sells for $4.50.
| A | B | C | |
|---|---|---|---|
| 1 | Drink | Cost | Price |
| 2 | Latte | $0.85 | $4.50 |
| 3 | Pour cost % | 18.9% |
The formula
Pour cost percentage is ingredient cost divided by selling price:
How it works
Reading the number:
- Add up every ingredient that goes into the drink — milk, espresso, syrup, cup, and lid — to get the cost.
- Divide that cost by the menu price: $0.85 ÷ $4.50 = 0.189, or 18.9%.
- Compare to your target. Specialty coffee usually aims for 18–24%; below target means strong margin.
- Format the cell as Percentage so the ratio reads as 18.9% rather than 0.189.
The flip side, 100% minus pour cost, is your gross margin on the drink — here about 81%.
Try it: interactive demo
Enter ingredient cost and menu price; see the pour cost and whether it beats a 22% target.
Variations
Target price from a pour-cost goal
To hit a 20% pour cost, divide cost by 0.20.
Flag drinks over target
Highlight any drink whose pour cost beats your ceiling.
Pitfalls & errors
Include all consumables — cup, lid, sleeve, napkin — or the pour cost looks better than it really is.
Track pour cost per drink in a column and sort descending to find your margin leaks fast.
Practice workbook
Frequently asked questions
What is a good pour cost for coffee?
Is pour cost the same as food cost?
How do I lower pour cost?
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