Plan Your Distillery Investment Accurately
Starting a craft distillery requires significant capital investment. Our calculator uses real industry data from 300+ distillery startups to give you accurate, personalized cost estimates for your specific situation.
Calculate Your Startup Costs
Answer a few questions about your distillery plans to get a detailed cost breakdown
Basic Information
Your Estimated Startup Costs
Financing Breakdown
Understanding Distillery Startup Costs
Detailed breakdown of each cost category and what to expect
Equipment & Machinery
30-40% of totalStill System: $85K-$400K depending on size and automation level. Copper stills cost more but offer better flavor control.
Fermentation: $15K-$75K for tanks, temperature control, and monitoring systems.
Bottling Line: $35K-$150K from manual to semi-automated systems.
Cost-Saving Tips:
- Consider quality used equipment for 30-50% savings
- Start with manual processes, automate later
- Lease expensive equipment to preserve cash flow
Facility & Buildout
20-30% of totalLocation: $8-25/sq ft lease or $100-300/sq ft purchase depending on area and condition.
Buildout: $50-150/sq ft for production areas, $100-300/sq ft for tasting rooms.
Utilities: Electrical upgrades ($15K-50K), water treatment ($10K-30K), drainage ($5K-20K).
Cost-Saving Tips:
- Look for former food/beverage facilities
- Consider industrial areas over prime locations
- Phase tasting room buildout after launch
Licensing & Legal
2-4% of totalFederal TTB: $1K application + $10K-20K in consulting and preparation time.
State Licenses: $2K-15K depending on state requirements and complexity.
Local Permits: $1K-10K for zoning, building, and special use permits.
Timeline Tips:
- Start licensing process 6-12 months early
- Budget for potential delays and resubmissions
- Consider hiring specialized consultants
Initial Inventory
8-12% of totalRaw Materials: $2-5/proof gallon for grain, $500-2K for yeast cultures.
Barrels: $150-400 each for new oak, $50-150 for used barrels.
Packaging: $3-8 per bottle including glass, labels, caps, and boxes.
Inventory Tips:
- Start with 3-6 months of raw materials
- Consider barrel leasing programs
- Order packaging in bulk for better pricing
Working Capital
25-35% of totalOperating Expenses: $8K-25K/month for payroll, rent, utilities, insurance.
Cash Flow Gap: 18-36 months before aged spirits generate significant revenue.
Growth Capital: Additional inventory and marketing as sales ramp up.
Cash Flow Tips:
- Plan for 24+ months of operating expenses
- Start with unaged spirits for immediate revenue
- Secure line of credit for seasonal fluctuations
Contingency Fund
15-20% of totalUnexpected Costs: Equipment delays, permit issues, construction overruns.
Market Changes: Raw material price increases, regulatory changes.
Opportunity Costs: Additional equipment or inventory for faster growth.
Risk Management:
- Always budget 15-20% contingency
- Keep contingency in liquid, accessible form
- Consider business interruption insurance
Financing Your Distillery
Explore funding options and strategies for your startup investment
SBA Loans
Best for: Equipment and real estate purchases. Favorable terms for manufacturing businesses.
Equipment Financing
Best for: Stills, bottling lines, and major equipment. Equipment serves as collateral.
Angel Investors
Best for: Experienced entrepreneurs with strong business plans and growth potential.
Crowdfunding
Best for: Consumer-focused brands with compelling stories and strong marketing.
Frequently Asked Questions
Common questions about distillery startup costs and planning
How much does it really cost to start a craft distillery?
Craft distillery startup costs typically range from $500,000 to $2.5 million depending on size and scope. This includes equipment ($200K-$800K), facility buildout ($150K-$500K), licensing ($20K-$35K), initial inventory ($50K-$150K), and working capital ($200K-$500K). Our calculator provides personalized estimates based on your specific plans.
What are the biggest unexpected costs when starting a distillery?
The biggest unexpected costs are usually working capital (18-36 months of operating expenses before significant revenue), facility modifications for compliance, utility upgrades, and longer-than-expected licensing timelines. Many new distillers underestimate these by 30-50%.
How much working capital do I need for a distillery?
Plan for 18-36 months of operating expenses as working capital, typically $200,000-$500,000 for most craft distilleries. This covers payroll, rent, utilities, and raw materials while your aged spirits mature and revenue builds up.
Can I start a distillery with less than $500,000?
While possible with a micro-distillery setup, most successful craft distilleries require $500,000+ to operate sustainably. Starting with less often leads to undercapitalization, quality compromises, or inability to scale. Consider phased approaches or additional funding sources.
What financing options are available for distillery startups?
Common financing includes SBA loans (up to $5M), equipment financing, angel investors, crowdfunding, and personal investment. Many distilleries use a combination of sources. SBA loans are popular due to favorable terms for manufacturing businesses.
Ready to Start Your Distillery Journey?
Now that you have realistic cost estimates, take the next step toward making your distillery dream a reality. Join our founding members program for exclusive resources and lifetime pricing.