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Agricultural Profit Margin Calculator

Agricultural Profit Margin Calculator

Compute net profit by subtracting input costs from total revenue to assess farm profitability

Input Parameters
Revenue Details
$
Variable Costs
$
$
$
$
$
$
$
Fixed Costs
$
$
$
$
About Agricultural Profit Margin Calculator
What does this calculator do?

This tool calculates your profit margin by comparing total revenue with all costs (fixed and variable) over a given land area. It helps you evaluate whether a crop is financially viable based on yield, price, and input costs.

Formulas Used

1. Gross Revenue: Field Size × Yield per Unit × Crop Price

2. Total Variable Costs: Seed + Fertilizer + Pesticide + Irrigation + Labor + Fuel + Other Variable Costs

3. Total Fixed Costs: Equipment + Land + Insurance + Other Fixed Costs

4. Total Costs: Fixed Costs + Variable Costs

5. Net Profit: Gross Revenue − Total Costs

6. Profit Margin (%): (Net Profit ÷ Gross Revenue) × 100

7. ROI (%): (Net Profit ÷ Total Costs) × 100

8. Breakeven Yield: Cost per ha ÷ Price per kg

Example Calculation
  • Field Size: 5 hectares
  • Expected Yield: 2,000 kg/ha
  • Price: $1.5/kg
  • Seed: $500, Fertilizer: $600, Labor: $1,000, Others: $900
  • Fixed Costs: $2,000

Gross Revenue = 5 × 2000 × 1.5 = $15,000
Total Variable = 500 + 600 + 1000 + 900 = $3,000
Total Costs = 3000 + 2000 = $5,000
Net Profit = 15000 − 5000 = $10,000
Profit Margin = (10000 ÷ 15000) × 100 = 66.67%
ROI = (10000 ÷ 5000) × 100 = 200%
Breakeven Yield = (5000 ÷ 5) ÷ 1.5 = 666.67 kg/ha

Real-Life Applications
  • Compare crop profitability side-by-side
  • Plan future budgets based on historical performance
  • Adjust inputs to maximize ROI
  • Prepare loan proposals with detailed cost-benefit analysis
How to Use This Calculator
Step-by-Step Guide
  1. Enter your crop type and field size
  2. Input expected yield per hectare
  3. Enter crop price per kg
  4. Add all variable costs
  5. Add your fixed costs (land rent, equipment, etc.)
  6. Click Calculate to get results
Tips for Accurate Estimates
  • Use actual or seasonal average prices
  • Break costs down per field, not whole farm
  • Include indirect costs like taxes and depreciation
  • Compare scenarios for different crop varieties
Pro Tip: Use this calculator every season to track profitability over time and refine your cost structure.
Frequently Asked Questions

It’s the percentage of revenue left after all costs are deducted. A higher margin means more efficient profitability.

Profit margin compares profit to revenue, while ROI compares profit to total investment (costs). ROI focuses on cost-efficiency.

It shows the minimum yield you must produce to cover costs. Helps assess risk in case of bad weather or low yield seasons.

This version is tailored for crops. For livestock, modify inputs to reflect livestock unit costs and income per head or unit.