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What does it cost to open a microbrewery?

Estimate what it takes to open a small brewery, from the brewhouse and fermenter package through glycol and cold storage, the buildout on your shell, the federal brewer's notice and state licence and bond, packaging, the taproom fit-out, first raw materials and the working capital you hold back before the beer sells. See the total, a realistic range, and your implied cost per barrel of annual capacity.

§ 01 Your numbers

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How much wort the system makes in one brew. A barrel is 31 gallons, so a 10 bbl brewhouse makes about 310 gallons, or roughly 20 half-barrel kegs, per batch. This is the number people quote when they describe a brewery, and on its own it tells you very little about annual output, because the wort has to go somewhere afterwards.
Mash tun, kettle, whirlpool, hot and cold liquor tanks, pumps, heat exchanger, control panel and installation. Price it from an actual fabricator quote for the size above. Imported systems sit well below domestic ones and the gap usually shows up later in lead times, spare parts and how much of the install you are expected to do yourself.
This is the input that actually sets your annual capacity, because a beer occupies its fermenter for the whole of fermentation and conditioning rather than for the day you brewed it. More tanks means more turns per year on the same brewhouse. Breweries that buy a big brewhouse and too few tanks discover they cannot brew their way out of a shortage.
A jacketed conical sized to your brewhouse, plus the brite tanks you carbonate and hold in. Cost scales with volume and with pressure rating. Include freight and rigging, which are real money on a tank that will not fit through a standard door.
How many times a year one tank gets emptied and refilled. A hoppy ale on a short turnaround might manage a dozen or more; a lager tying up a tank for six weeks manages far fewer. This is used only to work out your implied annual capacity and cost per barrel, not to add to the ledger.
Glycol chiller, insulated lines, pumps, the walk-in cold room, kegs and keg washing, and cleaning chemistry. The cold side is routinely underbudgeted because it is invisible in photographs, and it is also the part that fails hardest in a heatwave with full tanks.
Floor drains and trench, a slope that actually drains, three-phase power, water supply and heavy-duty water heating, wastewater handling, ventilation and the structural and permit work. On a raw industrial shell this is often the largest single line and it is almost entirely invisible to a customer. Get a contractor bid rather than a per-square-foot guess, because drains and power dominate it.
The federal brewer's notice, your state and local manufacturing and taproom licences, the bond where your state requires one, plus the professional help most applicants use to assemble the filing. Timelines here are long and they run in parallel with your build, so a lease signed before the paperwork starts is rent you pay while waiting.
Canning or bottling, whether that is a table-top filler, a mobile canner on contract or an inline machine, plus the seamer, date coder and the first pallets of cans and labels. Draft-only breweries can put a small number here; anything that leaves your building in a can needs this line taken seriously.
Bar, draft system and tower, glycol run to the taps, restrooms to code, furniture, point of sale and signage. A barrel poured here returns more per barrel than one sold through a distributor, which is why this line tends to earn its cost back quickly.
Opening grain, hops, yeast, cleaning chemicals and gas, plus enough cans, kegs or glassware to keep going while the first invoices come due. Buy for a few months rather than for one batch: hop contracts and grain pricing both reward committing early.
Rent, utilities, wages including your brewer, insurance, loan payments and ongoing raw materials in a normal month. Utilities on a brewery are heavier than the square footage suggests, because you are heating and chilling large volumes of water on a schedule.
How many months of that operating cost you hold in reserve. A brewery has a longer gap than most businesses between spending and earning: the grain you mash today is beer weeks from now, and the taproom takes months to build a regular crowd. Treat a small figure here as the thing to fix before you sign a lease.
Estimated cost
$721,000

Typical range $252,350$1,730,400

  • Brewhouse package$180,000
  • Fermenters & brite tanks$84,000
  • Glycol, cold room & cellar$45,000
  • Buildout on your shell$150,000
  • Federal notice, licence & bond$12,000
  • Packaging line$40,000
  • Taproom fit-out$60,000
  • First raw materials & supplies$18,000
  • Working-capital buffer$132,000
  • Total$721,000
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$250,000 to $900,000 is where most small breweries with a real taproom land: a 7 to 15 barrel brewhouse, a tank farm sized for several turns a year, a proper cold room, a canning solution and a shell that needed drains and power. The buildout and the tanks usually split the majority of it.

What this assumes, and where it could be wrong

Every one of these is a place the number could be off. They are here because you should be able to check our working, not because we are hedging.

EVERY NUMBER HERE IS YOURS, BECAUSE A BREWHOUSE IS A QUOTE AND NOT A STATISTIC.
The equipment package, the buildout, the licence schedule and the bond are all prices somebody quotes you for your size, your shell and your state, and they differ enough between two towns that a national average would mislead you rather than help. There is no federal source to look them up in, so we would rather itemise our own model in front of you than dress it up as a measurement. Every default above is ours and every one is editable. Get a fabricator quote for the brewhouse and tanks, a contractor bid for the shell, and your state's actual fee schedule, then type those in.

Annual capacity comes from tanks and turns, not from the brewhouse. The brewhouse sets the size of one batch; the fermenters set how many batches a year you can have in progress at once, because beer occupies its tank through fermentation and conditioning rather than just on brew day. That is why the calculator multiplies batch size by tank count by turns to get the capacity figure under your total. Buying a large brewhouse with few tanks is the classic expensive mistake: you cannot brew your way out of a shortage when there is nowhere to put the wort.

The buildout is usually about drains and power rather than about looks. A brewery floor needs a trench and a slope that genuinely drains, the water heating is heavier than a kitchen's, the electrical service is frequently three-phase, and wastewater from a manufacturing use is regulated differently from a restaurant's. Those items dominate the shell line above and none of them appear in a photograph of a finished taproom, which is why budgets built from photographs come in low.

Licensing runs on its own timetable and it runs while you are paying rent. A federal brewer's notice and a state manufacturing licence both take time to process, and neither starts until you can name and control the premises. That means the realistic sequence is lease first, then file, then build, and the months in between are cash out with nothing coming in. Size the working-capital buffer above against that whole stretch rather than against the weeks after you open.

The taproom is where the margin is. A barrel sold by the glass on your own premises returns several times what the same barrel returns through a distributor, because you keep the wholesale margin, the retail margin and the relationship. This ledger prices the taproom fit-out as one line, but it is the line most likely to determine whether the rest of the build is affordable. A distribution-first plan needs a much larger volume to work, and it needs the packaging line above to be a serious machine rather than a starter one.

Frequently asked questions

How small can a microbrewery be and still work?
Nano-scale systems of one to three barrels exist and people do run them, usually attached to a taproom that sells nearly everything on site. The arithmetic is tight: the licence, the drains, the cold room and the insurance cost roughly the same whether you brew 200 barrels a year or 2,000, so the fixed costs land on a much smaller volume. Run the calculator at your intended batch size and tank count and look at the cost per barrel of capacity under the total. If that number looks uncomfortable, adding fermenters is usually cheaper per barrel than upsizing the brewhouse.
Should I buy used brewing equipment?
Used tanks are one of the more sensible ways to take a large amount out of this ledger, and the market is real because breweries do close and upsize. Inspect for pitting and weld quality, confirm the jacket holds pressure and check that the fittings match what the rest of your cellar uses, since converting between fitting standards across a whole system gets expensive quickly. Be more careful with used control panels and chillers than with used vessels: a dented tank still ferments, a failing glycol chiller in July does not.
What is the biggest cost people leave out?
Two things, usually. The first is the buildout on the shell, especially drains, three-phase power and water heating, because those are invisible until a contractor prices them. The second is the working-capital reserve, because a brewery has an unusually long gap between spending money and collecting it. Grain becomes beer over weeks, a taproom builds a crowd over months, and licensing consumes time before either can start. The reserve line above is the one that most often separates a brewery that opens from one that opens and then stalls.
Do I need a packaging line to start?
Not necessarily. Plenty of small breweries open draft-only, selling through their own taps and into kegs for local accounts, and then add packaging once demand for takeaway beer is proven. In between there are mobile canning services that arrive with a machine and a crew and charge per run, which converts a large capital line into a per-batch cost. Put a small figure in the packaging input if that is your plan, and revisit it when you know how much of your volume actually wants to leave the building in a can.

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