Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Taproom profit per barrel
$1,546.00
Distribution profit per barrel
$110.00
Taproom gross revenue per barrel
$1,736.00
Taproom profit as multiple of distribution profit
14.1
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How to use this
- 1Enter production cost per barrel ($).
- 2Enter average taproom pour price (16oz) ($).
- 3Enter taproom labor/overhead allocated per barrel ($).
- 4Enter distributor wholesale price per barrel ($).
- 5Read your taproom profit per barrel on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Selling beer through a distributor means giving up a large slice of margin to the distributor and retailer markup chain before the beer reaches a consumer, while taproom sales capture the full retail price directly, minus taproom operating cost. This calculator compares profit per barrel-equivalent between the two channels: taproom sales at retail pour price minus taproom labor/overhead allocation, versus distribution sales at wholesale distributor price. It's meant to inform capacity allocation decisions, since a brewery that could sell every barrel through its own taproom at 3-4x the effective per-barrel revenue of distribution has a strong incentive to prioritize taproom capacity and treat distribution as an outlet for excess production rather than the primary channel, which is the reverse of how many breweries default to thinking about growth.
Worked example
Using the values the calculator loads with:
Inputs
- Production cost per barrel: 100 $
- Average taproom pour price (16oz): 7 $
- Taproom labor/overhead allocated per barrel: 90 $
- Distributor wholesale price per barrel: 210 $
Results
- Taproom profit per barrel: $1,546.00
- Distribution profit per barrel: $110.00
- Taproom gross revenue per barrel: $1,736.00
- Taproom profit as multiple of distribution profit: 14.1
What each field means
Inputs
- Production cost per barrel ($)
- The production cost per barrel used in the calculation, measured in $. Starts at 100 $ so you have a working example on load.
- Average taproom pour price (16oz) ($)
- The average taproom pour price (16oz) used in the calculation, measured in $. Starts at 7 $ so you have a working example on load.
- Taproom labor/overhead allocated per barrel ($)
- The taproom labor/overhead allocated per barrel used in the calculation, measured in $. Starts at 90 $ so you have a working example on load.
- Distributor wholesale price per barrel ($)
- The distributor wholesale price per barrel used in the calculation, measured in $. Starts at 210 $ so you have a working example on load.
Results
- Taproom profit per barrel
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Distribution profit per barrel
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Taproom gross revenue per barrel
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Taproom profit as multiple of distribution profit
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why is taproom typically so much more profitable per barrel?
A barrel sold through a distributor passes through distributor markup and retailer markup before reaching the consumer, so the brewery only captures a wholesale price, commonly $180-230 per barrel. The same barrel sold pour by pour in a taproom captures full retail value, often $900-1,100 per barrel worth of pours, even after subtracting taproom labor and overhead.
So why do breweries bother with distribution at all?
Taproom capacity is capped by physical space, seating, and local market size, while distribution provides access to a much larger customer base and builds brand recognition beyond the immediate area. Many breweries use distribution for overflow production and off-premise brand visibility even knowing the per-barrel margin is lower, treating it as a growth and awareness channel rather than the most profitable one.
How should I allocate taproom overhead per barrel fairly?
Take total monthly taproom labor and operating cost (not including beer production cost) and divide by barrels-equivalent sold through the taproom in that period. This avoids overstating taproom profitability by ignoring the real cost of running the space, which some breweries do when comparing channels informally.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Taproom vs Distribution Margin Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin" target="_blank" rel="noopener">Taproom vs Distribution Margin Calculator — RevenueLab</a> (2026).</p>
Source: [Taproom vs Distribution Margin Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/brewery-taproom-vs-distribution-margin) (2026).