Markup and margin measure the same profit from different angles. Markup is profit divided by cost. Margin is profit divided by price. A 50% markup equals a 33% margin. Confusing the two leads to underpricing: if you need a 40% margin and apply a 40% markup instead, you're actually running at 28.6% margin and leaving money on the table.
Markup & Margin Calculator for Bar / Brewery
Pre-filled with real bar / brewery industry benchmarks
Alcohol markup is one of the highest in any consumer business, which is why bars can survive at lower volumes than restaurants. The standard pour cost targets are 18 to 24% for liquor (meaning 76 to 82% gross margin per pour), 20 to 25% for draft beer, and 25 to 30% for bottled and canned beer. Wine runs 25 to 35% pour cost depending on whether it is by the glass or bottle. A well drink costs $0.50 to $1.00 per pour and sells for $5 to $8. A craft cocktail with $1.50 to $3.00 in ingredients sells for $12 to $16. Draft beer costs $1.00 to $1.50 per pint from a keg and sells for $6 to $8. Breweries have an even more compelling story: a pint of house-brewed beer costs $0.50 to $1.50 in ingredients to produce and sells for $6 to $8 in the taproom. The margin conversation for bars centers on pour cost control, because every ounce of overpouring or unaccounted shrinkage comes directly off your bottom line. This calculator helps you see how different pour costs and pricing strategies translate into real margins.
Markup & Margin Calculator
Pre-filled with bar / brewery industry defaults. Edit any field to use your real numbers.
Markup
300.0%
Margin
75.0%
Profit
$525
Bar / Brewery industry average: 75.0% margin (25.0% COGS).