Farm Gross Margin Calculator
Calculate gross margin per hectare from yield, price and variable costs.
Please note: Planning figures based on published averages. Soil type, climate, variety, season and local practice all shift these results substantially. Base real decisions on a soil test, local extension guidance and the product label — particularly for fertiliser, lime and any crop protection product, where the label is a legal document.
What the Farm Gross Margin Calculator does
Gross margin is revenue less the variable costs that change with the area grown. It is the standard measure for comparing farm enterprises, because it isolates the decisions a grower actually controls each season from the fixed costs of the business.
Formula
Revenue per ha = Yield × PriceGross margin = Revenue + Subsidy − Variable costsBreak-even yield = (Variable costs − Subsidy) ÷ PriceBreak-even price = (Variable costs − Subsidy) ÷ Yield
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Yield | t/ha | Yes | Accepts more than 0. |
| Price per tonne | selected currency | Yes | Accepts more than 0. |
| Variable cost items | text | Yes | Separate values with commas, spaces or new lines. |
| Cost per hectare | text | Yes | Separate values with commas, spaces or new lines. |
| Area | number | Yes | Accepts more than 0. |
| Area unit | one of 4 options | Yes | — |
| Subsidy or support per hectare | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Area unit and Currency.
- Enter Yield, Price per tonne, Variable cost items and Cost per hectare and 1 more.
- Optionally add Subsidy or support per hectare.
- Select Calculate.
Worked example
Wheat at 8 t/ha and 250 per tonne, with 800 of variable costs per hectare over 100 hectares.
- Yield
- 8 t/ha
- Price
- 250
- Costs
- 120, 350, 180, 90, 60
- Area
- 100 ha
Revenue 2,000 less 800 of costs gives a gross margin of 1,200 per hectare — 120,000 in total. Break-even is 3.2 t/ha or 100 per tonne.
Frequently asked questions
What is the difference between gross margin and profit?
Gross margin covers variable costs only. Fixed costs — rent, machinery, labour, insurance — still have to come out of it before anything is profit.
Why does break-even yield matter?
It tells you how far the crop can fall short before it stops covering its own costs. It is the single most useful number when deciding whether to apply another input.