Calculate gross revenue, gross margin (revenue minus variable costs), and net margin (after fixed costs) per acre for any crop.
Enter yield, price, variable costs, fixed costs, and area to get margins per acre and total profit.
Gross Revenue ($/acre) = Yield × Price
Gross Margin = Revenue − Variable Costs (seed, fertilizer, chemicals, custom hire)
Net Margin = Gross Margin − Fixed Costs (land, equipment depreciation, insurance, overhead)
Corn at 180 bu/acre × $4.50 = $810/acre revenue. Variable costs $400 → Gross Margin = $410/acre. Fixed costs $150 → Net Margin = $260/acre. 100 acres = $26,000 total profit.
1. Enter expected yield and price. 2. Variable costs per acre (inputs that vary with acreage). 3. Fixed costs per acre (overhead). 4. Acres. Calculate. Compare margins across crops to plan rotations.
Gross margin tells you whether a crop covers its direct costs and contributes to overhead. Net margin is the bottom line. Use margin analysis to compare crop enterprises, decide rotations, and evaluate whether to expand or reduce an enterprise.
Forgetting to allocate overhead to each enterprise. Using average costs instead of actual. Not including opportunity cost of land (what could you earn renting it out?). Confusing cash costs with total economic costs.
✓ Expert Reviewed: This calculator and its content have been reviewed by agricultural experts. Formulas are based on standard extension service recommendations.