Finance Tools
Farm Profitability Calculator
Calculate farm profitability using yield, price, variable costs, fixed costs, and optional land/equipment rent to estimate net profit and profit margin.
A farm profitability calculator built around the core decision loop: yield × price versus variable + fixed + rent + equipment.
Use any unit as long as price and costs match.
Average realized selling price.
Seed/feed, fertilizer, fuel, labor, etc.
Overhead, insurance, admin, depreciation, etc.
If you lease land rather than own it.
Lease, loan payments, or major equipment overhead.
Revenue
$300,000
80,000 units × $3.75 / unit
Total costs
$261,000
Variable $176,000 + Fixed $60,000 + Rent $0 + Equipment $25,000
Net profit
$39,000
Profit margin: 13.00%
Break-even price
$3.26 / unit
Buffer at current price: +$0.49 / unit
Tip: Use break-even price as your 'survival line'—then stress test with lower price or yield.
How it works
- Revenue = yield × price.
- Variable costs = yield × variable cost per unit.
- Total costs = variable + fixed + rent + equipment.
- Net profit = revenue − total costs.
- Break-even price = total costs ÷ yield.
FAQ
Should equipment payments be included in “cost”?
If you want a cash-focused view, yes. If you want pure operating profitability, set equipment payments to 0.
What if I own land (no rent)?
Keep rent at 0. If you want to include opportunity cost, model it as an annual “rent equivalent.”
How do I stress test this?
Lower price or yield, and increase variable cost per unit to simulate bad years.
How to use this farm profitability calculator
- Enter expected yield and selling price to estimate revenue.
- Enter variable costs per unit and fixed costs per year.
- Optionally include land rent and equipment payments.
- Review net profit, profit margin, and break-even price.
Example
A farm expects 80,000 units at $3.75/unit, variable costs $2.20/unit, fixed costs $60,000/year, and rent/equipment $25,000/year.
- Revenue = 80,000 × 3.75 = 300,000
- Variable costs = 80,000 × 2.20 = 176,000
- Total costs = 176,000 + 60,000 + 25,000 = 261,000
- Net profit = 39,000; break-even price = total costs / yield
More tools in Finance Tools
- Is Farming Profitable Calculator
Estimate whether farming is profitable by comparing total revenue vs total costs, then calculating net profit and profit margin.
- Farm Operating Cost Calculator
Estimate total farm operating costs including labor, fuel, seed, fertilizer, equipment maintenance, and overhead to understand true annual farming expenses.
- Farm Subsidy Impact Calculator
Estimate how farm subsidies change net income, break-even price, and cash-flow buffer under different scenarios.
- Store Profit Calculator
Calculate net profit, margin and break-even point for your store.