ABV is calculated by measuring how much sugar yeast consumed during fermentation. You take a specific gravity reading before fermentation (OG) and one after it finishes (FG), then apply the formula below. The heavier the original wort and the drier the final beer, the higher the ABV.
The constant 131.25 comes from the density of ethanol and water. Each gravity point (0.001 SG units) represents roughly 0.131% ABV when fully fermented. The factor was empirically derived and is widely used across homebrewing and commercial applications.
Derek brewed an American IPA. His OG reading was 1.065 and his final gravity after two weeks was 1.012. He is pouring 16 oz pints.
Tom reviewed the ABV formulas, gravity measurement guidance, and standard drink calculations on this page. He has evaluated over 400 homebrewing entries at regional and national competitions.