Coffee Profit Calculator

| Added in Business Finance

What is Coffee Profit and Why Should You Care?

Understanding your coffee profit can make the difference between a thriving cafรฉ and one that's just scraping by.

Formula

$$\text{Profit} = (P - C) \times N$$

Where:

  • P = Price per coffee (what you sell it for)
  • C = Cost per coffee (your expense to produce it)
  • N = Number of cups sold

Calculation Example

  • Price per coffee: $5.00
  • Cost per coffee: $1.50
  • Number of cups sold: 150

$$\text{Profit} = (5 - 1.50) \times 150 = 3.50 \times 150 = 525$$

So, your coffee profit is $525.

Frequently Asked Questions

Coffee profit is the total amount of money earned after subtracting the cost of producing each coffee from its selling price, multiplied by the number of cups sold.

Coffee profit is calculated using the formula: Profit = (Price - Cost) x Number of Cups. This gives you the total profit for all cups sold.

Include all variable costs such as coffee beans, milk, cups, lids, sugar, and a portion of labor and overhead costs allocated per cup.

A typical profit margin for coffee shops is 65-80% on each cup. This means if you sell a coffee for $5, your cost should ideally be between $1-$1.75 per cup.

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