Read Kaiser's
Understanding Efficiency for great info.
I use a 'total gravity points' system, which is just one way of doing it.
Each grain type has a certain amount of extractable sugars (i.e. potential) that has been determined by a lab. We usually don't know the exact number (which varies from crop-to-crop) but we usually have a pretty good idea just based on the type of grain it is. You can use the numbers from the
Wiki Malts Chart.
So the chart says that 1 pound of Maris Otter in 1 gallon of water yields a gravity of 1.038. Sometimes this number is given as 'gravity points' in ppg (
points per
pound per
gallon). So 1.038 is the same as 38 gravity points. And this 'potential' is at a theoretical 100% efficiency. So if you used 10 pounds of Maris Otter in 5 gallons water
and got 100% efficiency you'd have: 38 points/pound/gallon times 10 pounds divided by 5 gallons = 38 * 10 / 5 = 76 points (so your OG
at 100% efficiency would be 1.076). But you won't get 100% efficiency, you'll get less.
Using 'Total Points' you leave the volume out of the calculation (for now). So 10 pounds of Maris Otter at 38 ppg = 10 * 38 = 380 total gravity points. That's the theoretical max number of total points I can get (no matter what my volume is). At any point during the brewing process I can take a hydro reading, convert that gravity to points, and then multiply the result by whatever volume I have to get the total points I actually have. So if I have 6.25 gallons of 1.051 wort, I multiply 51 by 6.25 to get 318.75. If I then divide by the theoretical max points I get my efficiency up to that point in the brewing process. So 318.75/380=.84 or 84% efficiency.
It should be apparent that it's the combination of your gravity and volume that determine exactly just how much potential you extracted. So you need to be able to measure both your gravity and your volume as accurately as possible. Remember water expands as it heats so 5 gallons of water @ 170 degrees F will measure
more than 5 gallons...you need to account for this. It's in Kaiser's article.