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.
Quick profitability check: Revenue minus Variable + Fixed Costs. Includes a simple downside stress (revenue drop + cost increase).
Total annual sales (price × volume).
Seed, feed, fertilizer, fuel, labor, etc.
Rent, insurance, equipment depreciation, overhead, etc.
Models price drop, yield loss, or demand weakness.
Models input inflation (fertilizer, fuel, labor, etc.).
Baseline
Total costs: $265,000
Net profit: $55,000
Profit margin: 17.19%
Stressed scenario
Revenue: $288,000
Costs: $278,250
Net profit: $9,750
Profit margin: 3.39%
Tip: Try harsher stress (e.g., -20% revenue, +10% costs) to find your break point.
How it works
- Total costs = variable costs + fixed costs.
- Net profit = revenue − total costs.
- Profit margin = net profit ÷ revenue.
- Stress applies revenue drop and cost increase to estimate downside.
FAQ
Is this the same as a full farm budget?
No—this is a fast decision tool. A full budget breaks costs into categories and timing (seasonality).
What’s a realistic stress test?
Many farms test at least -10% revenue and +5% to +10% costs, then see whether cash stays positive.
Should I include debt payments as a cost?
Not here. This tool focuses on operating profitability; use DSCR tools for debt capacity.
How to use this is farming profitable calculator
- Enter expected annual revenue (or yield and price).
- Enter annual variable costs and annual fixed costs.
- Review net profit and profit margin.
- Optionally apply a revenue drop or cost increase stress to see downside risk.
Example
A farm expects $320,000 revenue with $210,000 variable costs and $55,000 fixed costs. Stress: -10% revenue, +5% costs.
- Baseline net profit = 320,000 − (210,000 + 55,000) = 55,000
- Profit margin = 55,000 / 320,000 = 17.2%
- Stress scenario recalculates profit and margin under downside assumptions
More tools in 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.
- Farm Operating Cost Calculator
Estimate total farm operating costs including labor, fuel, seed, fertilizer, equipment maintenance, and overhead to understand true annual farming expenses.
- Is Buying Farmland Worth It Calculator
Decide whether buying farmland makes financial sense by estimating annual net income, appreciation, total return, payback period, and comparing against an alternative investment return.
- Farm Subsidy Impact Calculator
Estimate how farm subsidies change net income, break-even price, and cash-flow buffer under different scenarios.