What is alcohol cost?
Alcohol cost percentage is the cost of alcohol used divided by alcohol sales, multiplied by 100. $7,000 of alcohol used on $28,000 in sales is 25%.
See it in action.
Here's an example using the numbers already in the calculator:
- 01Gather your numbers.
Beginning alcohol inventory: $4000; Alcohol purchases: $6000; Ending alcohol inventory: $3000; Alcohol sales: $28000.
- 02Apply the formula.
(Beginning inventory + purchases − ending inventory) ÷ alcohol sales × 100.
- 03Review the result.
Your estimated alcohol cost percentage is 25%. Adjust the inputs to explore your own scenario.
Make the most of your numbers.
- Use figures from the same time period and keep your units consistent.
- Update your inputs regularly as prices, demand, and operating costs change.
- Use the result as a planning guide alongside your own business context and professional advice.
Frequently asked questions.
What does the alcohol cost calculator tell me?+
Alcohol cost percentage is the cost of alcohol used divided by alcohol sales, multiplied by 100. $7,000 of alcohol used on $28,000 in sales is 25%.
How often should I review this number?+
Review it whenever the underlying costs or assumptions change, and compare results consistently over time. The right frequency depends on your operation.
Is this result a substitute for financial advice?+
No. This calculator is an estimate for planning and education. Check your assumptions and consult a qualified professional when making financial or compliance decisions.
