Thanks, Orfy, for this idea - I agree, it comes up all the time and is often misunderstood. Your questions are also very helpful!
My ingredients' cost per 5 gallon batch has now stabilized and most recently has run from
$19.49 for a Belgian witbier to $
21.14 for a Cream Stout to
$23.25 for a hoppy wheat pale ale. I've tracked these costs through Beersmith (if you accurately enter the costs in Beersmith's inventory function, then each recipe you enter will total the costs of ingredients for that batch).
From Jesterday's post, we know that context matters when discussing the cost of homebrewing. Jesterday's cost per batch is extraordinary because he lives with wolves in the Arctic Circle - or at least in a very remote area where he pays exorbitantly for shipping.
Here's what contributes to my costs:
- I brew all grain, so my cost per batch is going to be lower now than when I first started brewing with extract and steeping grains. Almost all beginners most of whom will start with extract, will find that their cost per batch is significantly more than my current costs. This is important for beginners to know - your cost per batch will likely be more than many of the more experienced brewers here because extract brewing costs more than all grain brewing.
- Because I live in the southern portion of Chicago, I am able to significantly lower my cost per batch by buying grain in bulk from Mid Country Malt and picking it up myself. I can buy a 55# bag, I don't have to arrange a group buy, or order a full pallet load, or pay any shipping. I am truly fortunate.
- One item that raises my cost per batch is that I specialize in brewing organically. This means that I pay between 84 and 97 cents per pound of organic grain at Mid Country. For hops, I pay between $2.07 to $2.95 per ounce. These costs could be reduced significantly if I did not buy organic ingredients, but for me, I've decided to pay a little more per batch to be able to brew organic beer. But I am always exploring ways to do so and keep my costs in line. Other people make other choices which impact their cost per batch. For example, there are brewers who mainly brew big, high abv beers. Or brewers who brew hoppy beers, routinely using 4 or more ounces of hops per batch. We all make brewing and style choices that impact our cost per batch.
- A remaining area for me to reduce costs would be in yeast. Currently, I just buy the yeast (at my lbhs) and use it. Others here have taught me through their example of how to harvest, wash and store yeast, so that it can be reused. I would like to try this and if I did, my cost per batch would begin to inch downwards towards $15. But here's the thing - I make my brewing choices in light of the rest of my life. In my case, for example, I have two teenage boys, a stressful job (in this economy, seven other families depend upon me for their monthly income) and a spouse who I adore and support. So, at this point, I'm not managing my yeast and reusing it, because I've made the choice that while it would be cost efficient, I can't justify the time right now. But I am really looking forward to getting into that part of brewing at some point.
All of the above have referred to the costs of ingredients per batch, ignoring the other costs that Orfy mentioned in the OP. I've never tracked my propane usage, so I can't say. My equipment is, I think kind of middle of the road - pretty much the standard, baseline equipment for brewing all-grain. It includes: grain mill and bucket, beverage cooler mashtun, propane stove, 12 gallon brew kettle, immersion chiller, three carboys (6, 5 and 3 gallons), vinator, bottle tree and bottling bucket. Roughly, this equipment cost me $500.
In summary, I don't brew because its cheaper than buying commercial craft beers - but I do take steps to lower my costs as much as is reasonable, given choices that I make. For me, its about balance and enjoying the hobby at a reasonable cost.