Enter the cost to produce one keg ($) and the desired margin per draft (%) into the Draft Price Calculator. The calculator will evaluate and display the Draft Price.

## Draft Price Formula

The following formula is used to calculate the Draft Price.

**DP = ( C/40) / (1-M/100)**

- Where DP is the Draft Price ($/16oz draft)
- C is the cost to produce one keg ($)
- M is the desired margin per draft (%)

## How to Calculate Draft Price?

The following example problems outline how to calculate Draft Price.

Example Problem #1:

- First, determine the cost to produce one keg ($).
- The cost to produce one keg ($) is given as: 250.

- Next, determine the desired margin per draft (%).
- The desired margin per draft (%) is provided as: 40.

- Finally, calculate the Draft Price using the equation above:

DP = ( C/40) / (1-M/100)

The values given above are inserted into the equation below:

DP = ( 250/40) / (1-40/100) = 10.416 ($/16oz draft)

Example Problem #2:** **

For this problem, the variables needed are provided below:

cost to produce one keg ($) = 700

desired margin per draft (%) = 50

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

DP = ( C/40) / (1-M/100)** = ?**