Recipe Costing and Drink Margin Calculator
Works out the cost of each drink or menu item from the owner's ingredient prices and recipe amounts.
Before and after
Hi Cora, here is the costing for your three 12 oz drinks, based on the prices you gave me.
Unit costs
- Espresso beans: $28.00 for 32 oz (2 lb) = $0.875 per oz
- Milk: $4.80 for 128 oz (1 gallon) = $0.0375 per oz
- Oat milk: $4.20 for 32 oz = $0.13125 per oz
- Vanilla syrup: $10.00 for 25 oz = $0.40 per oz
- Cup: $11.50 for 50 = $0.23 each
- Lid: $8.00 for 100 = $0.08 each
Latte, sells for $4.75
- Beans, 0.5 oz: $0.4375
- Milk, 9 oz: $0.3375
- Cup: $0.23
- Lid: $0.08
- Total cost: $1.085, rounded to $1.09
- Profit per sale: $3.66
- Cost percentage: 22.9%, margin 77.1%
- At or under your 30% target
Vanilla latte, sells for $5.25
- Latte cost before rounding: $1.085
- Vanilla syrup, 1 oz (2 pumps): $0.40
- Total cost: $1.485, rounded to $1.49
- Profit per sale: $3.76
- Cost percentage: 28.4%, margin 71.6%
- At or under your 30% target
Oat milk latte, sells for $5.50
- Beans, 0.5 oz: $0.4375
- Oat milk, 9 oz: $1.18125
- Cup: $0.23
- Lid: $0.08
- Total cost: $1.92875, rounded to $1.93
- Profit per sale: $3.57
- Cost percentage: 35.1%, margin 64.9%
- Over your 30% target
- Price at your 30% target: $1.93 divided by 0.30 = $6.4333, rounded up to $6.44. That is a figure for you to consider. The price is your decision.
Summary: 3 drinks costed, 1 is over your 30% target (the oat milk latte).
These costs include only the ingredients and packaging you listed. They do not include labor, rent, card fees, tax, or waste.
Questions for the owner
- Do you use sleeves, stirrers, or napkins with these drinks? I did not include any because none were listed.
- Is there any milk or oat milk lost to steaming leftovers or spills? I counted exactly 9 oz per drink.
- Do you want me to cost any other drinks or food items the same way?
What it does
Works out the cost of each drink or menu item from the owner's ingredient prices and recipe amounts. Then it shows the profit per sale, the cost percentage, and the price needed to hit a target the owner chooses.
Use it when: Use when a cafe owner wants to work out what a drink or menu item costs to make and how much margin it earns, such as "cost out this latte," "what's my margin on this drink," "is my price too low," or "recipe costing."