Cost, Profit and Selling Price Calculator for a Simple Farm Enterprise
Expenses Euro (€)
Rent of land
Permanent labour (Gross salary)
Casual labour (Gross salary)
Seeds/Plants
Fertilizers/Manure
Pesticides
Machinery and lubricants
Machinery rentals
Machinery maintenance
Machinery insurance fees
Crop insurance fees
Veterinary expenses
Animal medicines and vitamins
Purchased feeding stuffs
Artificial insemination
Electricity
Animal water supply
Irrigation fees
Certification fees
Packaging
Marketing/trading expenses
Other expenses
Total expenses (€)  
Calculator 1 Calculator 2
Production (in kilograms, tons, bunches, animal heads)
Cost of production (Euro per kilogram or ton or bunch or animal head)  
Selling price (Euro per kilogram or ton or bunch or animal head)
Gross Profit (Euro per kilogram or ton or bunch or animal head)  
Mark-up (%)  
Gross margin (%)  
Production (in kilograms, tons, bunches, animal heads)
Cost of production (Euro per kilogram or ton or bunch or animal head)  
Gross profit (Euro per kilogram or ton or bunch or animal head)  
Mark-up (%)  
Desired or permissible gross margin (%)
Selling price (Euro per kilogram or ton or bunch or animal head)  

Explanations/clarifications

  • Simple farm enterprise: Farm enterprise with a single product, for example tomato cultivation, beef cattle.
  • Machinery rentals: Any mechanized work paid to a third party, e.g. hiring a combine harvester.
  • Feeding stuffs: On-farm production for own consumption is not included.
  • Cost of production: If it is equal to selling price then there is no profit or loss (break even price).
  • Mark-up (%): It is the gross profit as a percentage of the cost.
  • Gross margin (%): It is different from mark-up. It is the gross profit as a percentage of the selling price.

Equations

  • Cost of production = Total expenses / Production
  • Gross Profit (Euro) = Selling price - Cost of production
  • Mark-up (%) = [Gross Profit / Cost of production] * 100
  • Gross margin = [Gross Profit / Selling price] * 100
  • Selling price = Cost of production / [1 - (gross profit / 100)]

Assumptions

  • Total expenses > 0
  • Gross margin < 100

To be used when the selling price is determined by a third party (e.g. wholesalers). Producers are price-takers.

Instructions

  1. Insert all expenses. You may leave blank any cell that is not applicable in your case. Any expenses that are not included in the list may be inserted in "Other expenses".
  2. Insert the total production.
  3. Insert the selling price.
  4. Click the "Outcome" button.
  5. Click the "Reset" button if you wish to clear the calculator.
  6. Click the "Save" button if you wish to save the outcome to an Excel spreadsheet.

To be used when the producer is in a position to specify gross margin and thus the selling price, taking into consideration the cost of production, competition and market conditions.

Instructions

  1. Insert all expenses. You may leave blank any cell that is not applicable in your case. Any expenses that are not included in the list may be inserted in "Other expenses".
  2. Insert the total production.
  3. Insert the desired or permissible gross margin taking into consideration the cost of production, market conditions, competition, and demand and supply.
  4. Click the "Outcome" button.
  5. Click the "Reset" button if you wish to clear the calculator.
  6. Click the "Save" button if you wish to save the outcome to an Excel spreadsheet.
© Agricultural Reserach Institute - Rural Development DepartmentContact: dari@ari.moa.gov.cy | www.ari.gov.cy