Skip to content
Farming

Crop Profit per Acre: A Simple Way to Know if Your Farm Makes Money

Add up your real costs, compare them with your income, and know your profit per acre before the next season.

T ToolPoint Team 2 min read
A rising bar chart with a sprout and a rupee coin
In this post
  1. Step 1: Write down every cost
  2. Step 2: Work out your income
  3. Step 3: Profit per acre
  4. Step 4: Know your break-even price

Many farmers know their total income from a crop, but not their real profit per acre. Without that number, it is hard to decide which crop to grow next season.

Step 1: Write down every cost

Include the costs people often forget:

Cost Examples
Seeds and plants Seed packets, nursery plants
Fertiliser and sprays Urea, DAP, pesticides
Machines Tractor hours, harvester, diesel
Labour Sowing, weeding, harvesting
Water Pump electricity or diesel
Other Transport to mandi, commission, loading

Add them all, then divide by the number of acres. The Farm Cost per Acre Calculator does this for you.

Step 2: Work out your income

Income = yield per acre × price you got. Use the real mandi price after deductions, not the price you hoped for.

Step 3: Profit per acre

Profit per acre = income per acre − cost per acre.

The Crop Profit per Acre Calculator shows this in one screen, plus your return on cost. You can even compare two crops side by side.

Step 4: Know your break-even price

The break-even price is the lowest price at which you do not lose money. If the mandi price falls below it, you lose on every quintal. Check yours with the Crop Break-even Calculator before you sell.

Keep your numbers in a small notebook every season. After two or three seasons you will clearly see which crop pays best on your land.

Tools from this post

Keep reading

All posts