Keg Profit Calculator
A keg looks like easy money until you count the foam. Between line cleaning, over-poured heads, and the cloudy last gallon, a half-barrel rarely yields its theoretical 124 pints. This calculator works both directions: enter your keg, waste, and pint price to see the real profit, or enter a target margin to find the price you must charge.
Keg Profit Calculator
Real-world draft yield is typically 5 to 15% below the theoretical volume because of foam, line cleaning, and the final cloudy gallon.
Results
How to use the calculator
Keg profit is the straight calculation: pick your keg size (or enter a custom volume in ounces), set the serving size and your realistic waste percentage, then enter the keg cost, extra costs, and the price per serving. You get servings, revenue, cost, net profit, profit per serving, margin, markup, and the break-even price. Price setter works backwards: enter the keg size, serving size, waste, total cost, and the margin you want, and it tells you the price per serving you must charge.
The keg profit formulas
Servings = floor(Keg ounces × (1 − Waste) / Serving ounces). Revenue = Servings × Price. Total cost = Keg cost + Extras. Profit = Revenue − Cost. Margin = Profit / Revenue × 100. Markup = Profit / Cost × 100. For the price setter: Required price = (Cost / Servings) / (1 − Target margin).
Worked example
A bar buys a half-barrel keg (1,984 oz) for $120 with $30 in extras, pours 16 oz pints, loses 8% to foam and waste, and charges $6 per pint.
- Servings: 1,984 × 0.92 / 16 = 114.08, so 114 pints.
- Revenue: 114 × 6 = $684. Total cost: 120 + 30 = $150 ($1.32 per pint).
- Net profit: 684 − 150 = $534, or $4.68 per pint.
- Margin: 534 / 684 × 100 = 78.07%. Markup: 534 / 150 × 100 = 356.00%.
- Break-even price: 150 / 114 = $1.32 per pint.
With the price setter, a $150 total cost and a 75% target margin on the same 114 servings needs 1.3158 / 0.25 = $5.26 per pint.
What other calculators miss
Most keg profit tools assume every theoretical pint gets sold, which overstates profit by 5 to 15% because foam, line cleaning, and the cloudy final gallon are real. Others compute only net profit with no margin, no markup, and no break-even price, leaving the actual pricing decision to guesswork. Pricing calculators solve the reverse problem but cannot show what you earn at today's price. This tool applies your waste percentage before any money math, reports margin and markup the way our beer profit page does, and adds both the break-even price and the price setter, so the same page answers what you earn and what you must charge.
FAQs
How many pints are really in a half-barrel keg?
The theoretical count is 124 sixteen-ounce pints, but bars typically pour 140 to 155 twelve-ounce servings or about 105 to 115 pints after 5 to 15% waste from foam, line cleaning, and the final cloudy gallon. Use 8 to 10% waste as a starting point.
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. A $534 profit on $684 revenue is a 78.07% margin and a 356.00% markup. Bars usually think in margin; suppliers talk in markup.
Should I include CO2, cups, and labor in the cost?
Yes for cups and CO2, which scale with the keg. Labor is harder to allocate per keg; if you include it, use only the pouring and cleaning time attributable to that keg so the break-even price stays meaningful.
Why does the calculator round servings down?
You cannot sell a partial pint. The floor matches what actually leaves the tap, which is why realistic waste plus rounding gives 114 pints instead of the theoretical 124.
What margin should a bar target on draft beer?
Industry guidance commonly lands around 20 to 40% on paper after all costs, but draft beer gross margins at the keg level routinely exceed 70% because the keg itself is cheap relative to pint prices. Set the price setter to your true target after overheads.
Does this work for wine, cider, or cold brew on tap?
Yes. Any kegged beverage works the same way: enter the keg volume in ounces, your serving size, and your costs. The math does not care what is in the keg.
How do keg deposits affect profit?
A refundable deposit is not a cost since you get it back. Only count it if you lose deposits regularly, in which case add the expected loss to extra costs.
Can I use this for a party instead of a bar?
Yes. Enter your keg cost, set extras to cups and ice, and use a price of zero to see cost per serving, or your ticket price to see event profit.