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Pricing guide · Café drinks

How to price a latte: cost per cup and what to charge

A latte costs under a dollar in ingredients. Milk is usually the biggest line — and cups and lids can cost as much as the coffee.

Example batch cost

$0.89

Cost per cup

$0.89

Price at 20% food cost

$4.43

Latte cost calculator

Ingredients

$0.40
$0.32
$0.12
$0.05
Cost per cup$0.89Suggested per cup$4.43

Latte (12 oz)

Total ingredient cost$0.89
Cost per cup$0.89
Suggested price per cup$4.43

Enter your price to see food cost % and profit.

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The app keeps your ingredient prices. When butter goes up, every dish that uses it updates — no re-typing.

Worked example: Latte (12 oz)

This batch makes 1 cup. Here is where the money goes, most expensive first:

IngredientUsedCost
Espresso beans18 g$0.40
Milk240 ml (+10% waste)$0.32
Takeaway cup1 piece$0.12
Lid1 piece$0.05
Total for 1 cup$0.89

That is $0.89 per cup. At a 20% food cost the price should be at least $4.43. Across the usual 15–25% range for café drinks, that is $3.55 (at 25%) to $5.91 (at 15%) per cup — before your time and overheads.

What drives the cost of a latte

  • •Milk (and alternative milks, which can cost 2–3× more)
  • •Coffee beans and dose size
  • •Cups, lids and sleeves

Tips for pricing a latte

  • ✓Add 5–10% waste to milk for steaming leftovers
  • ✓Charge extra for oat, almond and other alternative milks
  • ✓Cost dine-in and takeaway separately — takeaway adds cup and lid

Sell small, medium and large sizes; add oat milk and extra shots as upgrades.

Don’t forget your time and overheads

Drinks carry a low food cost % because the price also pays for the barista’s time, the machine, rent and waste. Count cups, lids and sleeves as ingredients — on a cheap drink they can cost more than the coffee.

Keep your latte prices up to date

Save this recipe in the free CostMyDish app. Your ingredient prices live in one Library — when espresso beans goes up, every recipe that uses it recalculates, and you see which items need a new price.

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Common questions about pricing a latte

How much does it cost to make one cup?+

In our example (Latte (12 oz), makes 1 cup), the ingredients cost $0.89 in total, or $0.89 per cup. Enter your own prices in the calculator for your exact cost.

What food cost % should I use for a latte?+

For café drinks most businesses aim for 15–25%. At 20%, the example works out to at least $4.43 per cup before labour and overheads.

How much does a latte cost to make?+

With the example prices, a 12 oz takeaway latte costs just under a dollar including cup and lid. Use your own bean and milk prices for an exact figure.

What food cost % should a coffee shop aim for?+

Drinks are usually priced at 15–25% cost, so the price also covers labour, equipment and rent.

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