Free tool

Barrel Cost Amortization Calculator

Model the true cost of an aging barrel. This estimate combines the barrel, the spirit at fill, and the carrying cost over the aging period, then spreads it over the proof gallons that actually survive evaporation. It is a modeled planning estimate; in Spirit Sight, true cost per barrel is computed from your real FIFO cost layers and reconciled to the general ledger.

$
PG
$/PG
$/yr
yr
%/yr

The formula

cost per remaining PG = (barrel + fill cost + carrying x years) / (fill PG x (1 - loss)^years)

A worked example

A $250 cask filled with 66.25 proof gallons and carried six years at 4% annual loss has 51.9 proof gallons left to carry the cost, so the cask alone contributes about $4.82 per surviving proof gallon before spirit, storage, and overhead are added.

Doing this math barrel by barrel? The platform runs the same calculation on every record automatically, reconciled against the books. See it live.

A modeled estimate. Evaporation ranges ~2-6%/yr; include your real overhead for accuracy. This tool uses the same calculation as the Spirit Sight platform. It is general information, not tax or legal advice.

What is the true cost per barrel of whiskey?
A fully-loaded cost includes the barrel, the spirit at fill, burdened carrying cost over the years of aging, and the value of the angel's share lost to evaporation, spread over the proof gallons that remain at dump.
Why does evaporation raise cost per proof gallon?
Because the same total cost is spread over fewer surviving proof gallons. A barrel that loses 20 percent over five years concentrates its cost into the 80 percent that is left.
How is this different from cost accounting in the product?
This tool is a single-barrel planning model. Spirit Sight computes true cost per barrel from your actual FIFO cost layers, real overhead, and per-barrel loss, then reconciles it to the general ledger so the number is defensible, not estimated.
Angel's share calculatorBottle yield calculatorDistillery cost accountingCost per barrel (glossary)

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