Home Money Saving Comparing Costs: Keg vs. Canned Beer – Which is more Affordable?

Comparing Costs: Keg vs. Canned Beer – Which is more Affordable?

Comparing Costs: Keg vs. Canned Beer – Which is more Affordable?

Which is Cheaper Keg or Canned Beer

My wife and I throw a party every Memorial Day weekend. We supply our guests with choices of soft and alcoholic beverages including beer. During party planning, each year my wife and I discuss whether to buy cases of canned beer or a keg. The perception is getting a keg is similar to buying in bulk, therefore it’s cheaper. But is keg or canned beer cheaper?

I decided to break down the math and compare the cost of a keg of domestic light beer to buying the same beer in cans.

Note: Prices may vary by location.

Keg Beer (16 Gallon)

16 Gallons x 128oz per gallon = 2048 ounces of beer
$252 for the Keg (including deposit, tap and keg cost) / 2048 ounces of beer = about $0.123 per ounce

But, we also have to take into account the stack of 300 cups I purchased ($19 at Sam’s Club), and the ice I purchased to keep the keg cold (4 bags of 20 pounds of ice at $3.09 at Costco = $12.36). After taking these factors into account, the cost of keg beer looks like this:

$252 for the keg + $19 for cups + $12.36 for Ice = $283.36
$283.36 / 2048 ounces = $0.138 per ounce

Canned Beer:

24 Cans x 12oz per can = 288 ounces of beer
$20.37 per case (on sale) / 288 ounces of beer = $0.070 per ounce

We also have to take into account that I’d likely put ice into coolers since I have to keep the cans of beer cold as well. If we assume using the same amount of ice, and that we’d need 7 cases of beer (it’s actually 7.1 cases) to equal the keg, our cost for canned beer looks like this:

7 cases of beer x $20.37 per case + $12.36 for Ice = $154.95
$154.95 / 2016 ounces = $0.076 per ounce

Keg Beer (8 Gallon Keg)

A 16 gallon contains 170 twelve-ounce servings, which may be more than you need for your gathering. An alternative is an 8-gallon keg. Unfortunately, even though an 8-gallon keg is half the size of its 16-gallon counterpart, it is not half the cost. While a 16-gallon keg of domestic light beer costs $252, the 8-gallon version will set you back $181.25. Assuming you’d need to buy the same package of cups, but only half the ice the cost breakdown is as follows:

$181.25 for the keg + $19 for cups + $12.36 for Ice = $212.61
$212.61.58 / 1024 ounces = $0.2076 per ounce

Additional Considerations

If you go the route of having a keg, a refundable deposit may be required for the tap as well as the keg which could total $150. If you have leftover beer, it will need to be consumed quickly or you will incur additional costs to keep it cold.  Eventually, the beer will also go flat.  However, it’s a neat feature to have a party with a keg as a conversation piece adding to the overall party atmosphere.

If you buy canned beer the leftovers can easily be stored for later use.  However, you will need coolers or a large container of some sort to fill with ice to keep it cold.

Cost Analysis

The cost of having a 16-gallon keg is actually slightly more than canned beer if you can find it on sale. Buying an 8-gallon keg is much more expensive. Given the perception that buying in bulk is usually cheaper, this was a surprise.

The bottom line is, the cost of having keg beer isn’t the money saver you might have thought. Whether you buy a keg or canned beer for your large gathering will come down to convenience, taste, and personal preference.

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Brock Kernin

Brock is a software engineer by day and personal finance blogger at night. He is a fitness junkie and enjoys grilling and smoking meat. Married with two children,  Brock strives to improve his skills as a husband and father, and is always on the lookout to stretch his family’s budget as far as he can.

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