The formula
Drink cost = coffee + milk + cup and lid + syrup. Coffee is the dose in grams times the price per gram of beans; milk is the volume used times the price per litre. Divide by the menu price to get the drink cost %, or divide by your target % to get a price.
What range to aim for
Coffee-industry sources put cafe beverage cost around 20–25% of the price (Zest Specialty Coffee Roasters, 2025). It is an Australian roaster's benchmark and there is no North American association figure for it, so treat it as indicative. Milk drinks usually cost more than black coffee, so look at the whole menu mix, not one drink.
What this does not include
Labor, rent and waste are not in the cost of one drink. They are why a 22% drink cost still leaves a thin profit: labor alone often runs 30–35% of sales in a cafe (same source). Track both monthly with the free calculator.
Read the guide: How to Price a Latte: Formula, Cost Breakdown & Profit.