← Coffee roaster margin calculator

How to price roasted coffee, with a worked example

Most small roasters price a bag by looking at the shop down the road. The number that should come first is what a bag costs you, and the part people miss is that you pay for coffee that evaporates. Here is the arithmetic for a 12 oz bag, and the same figures are in the free calculator.

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A worked example

StepWorkingResult
Green coffee$5.10 per lb$5.10
Roast loss 15%5.10 / 0.85$6.00 per roasted lb
Labor and gas0.40 + 0.10$6.50 per roasted lb
12 oz of coffee6.50 × 12 / 16$4.88
Bag, label and valve$0.90
Card fees at $162.9% + $0.30$0.76
Profit on a $16 bag16 − 4.88 − 0.90 − 0.76$9.46 (59.1%)

Add $5.50 of postage that the customer does not pay for and the same bag earns about $3.96. Wholesale at $9.60 with no postage and no card fee earns $3.82 a bag, close to that, which is why it pays to look at profit per roasted pound and per roasting hour rather than at margin alone.

Blending for cost

If a cheap Brazil scores 82 and an Ethiopia scores 89, a mix averages between them. The calculator checks every blend in 5% steps for the cheapest one that still meets your target score, and tells you how much green to weigh out for the batch.

Questions

What does roast loss do to my pricing?

Every roasted pound needs more than a pound of green. At 15% loss, $5.10 green becomes $6.00 per roasted pound before anything else is added.

Is wholesale worth it for a small roaster?

It depends on profit per roasting hour, not margin alone. A lower-priced wholesale bag can still earn well when it costs almost nothing to ship and sell, and a retail bag that needs shipping and a payment fee can earn less than it looks.

Can a blend be cheaper than a single origin at the same cup score?

Yes, when a cheap coffee and a high-scoring coffee average to the target. The optimizer finds the cheapest such mix and shows the saving.

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