Enter the cost to produce one keg ($) and the desired margin per draft (%) into the Draft Price Calculator. The calculator will evaluate and display the Draft Price.
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Draft Price Formula
The following formula is used to calculate the Draft Price.
DP = ( C/40) / (1-M/100)
- Where DP is the Draft Price ($/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) = ?