Crack Spread Calculator

Work out crack spread instantly with clear inputs, formula shown and shareable results.

About Crack Spread Calculator

The crack spread is a proxy refining margin: for a 3-2-1 crack, three barrels of crude yield two of gasoline and one of distillate, and the spread is product revenue minus crude cost divided by three. Gallons are converted at 42 per barrel. It ignores operating cost and the actual product slate but tracks refining economics closely.

Formula

3-2-1 crack spread

Spread = (2 x gasoline price x 42 + 1 x diesel price x 42 - 3 x crude price) / 3

Worked example

With the default values below, Crack Spread Calculator returns Crack Spread of $24.200. Change any input above and every figure here is recalculated in your browser.

Inputs used

Crude Priceminimum 0 per bbl: 78 per bbl
Gasoline Priceminimum 0 per gallon: 2.35 per gallon
Diesel Priceminimum 0 per gallon: 2.6 per gallon
Crack Ratioone of 3-2-1 crack, 5-3-2 crack, 2-1-1 crack: 3-2-1 crack

Results

Crack Spread: $24.200
Product Revenue Per Barrel: $102.200
Crude Cost Per Barrel: $78.000
Margin On Crude Cost: 31.03%

Step by step

1Values used
23-2-1 crack spread
3Crack Spread= 24.200
4Product Revenue Per Barrel= 102.200
5Crude Cost Per Barrel= 78.000
6Margin On Crude Cost= 31.03

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why does the crack spread widen in summer?

Gasoline demand peaks in the driving season while refinery capacity is fixed, so gasoline cracks strengthen. Distillate cracks typically strengthen in winter with heating demand.

Is the crack spread a real margin?

No. It excludes energy, catalyst, labour, maintenance and the value of by-products, and assumes a fixed yield. Actual refinery net margin is usually several dollars per barrel below the crack.