# Farm Gross Margin Calculator

> Calculate a crop enterprise’s gross margin: output value minus variable costs (seed, fertiliser, sprays, fuel, labour), per acre, per hectare and in total.

Category: Agriculture · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/farm-gross-margin-calculator

Gross margin is the value of what a crop produces minus the costs that vary with it. It is the standard way to compare enterprises before fixed costs.

Also called: Crop gross margin calculator, Enterprise margin calculator.

## Inputs
- Crop area (default 20)
- Area and figures per (options: Acre, Hectare; default ha)
- Yield (default 6)
- Price per unit (default 220)
- Other output (optional) (default 0; optional)
- Seed (default 120; optional)
- Fertiliser (default 260; optional)
- Crop protection (default 90; optional)
- Fuel, repairs and contractors (default 110; optional)
- Casual labour (default 80; optional)
- Other variable costs (default 40; optional)
- Currency

## Results
- Gross margin for the crop
- Gross output
- Variable costs
- Gross margin per unit area entered
- Gross margin per hectare
- Gross margin per acre
- Margin as % of output

## Formula

```
Output = Yield × Price + Other output;  Gross margin = Output − Variable costs;  Total = per-area figure × Area
```

Where:
- Variable costs: costs that rise and fall with the crop area
- Area: crop area in the chosen unit

## Worked example
1. Output = 6 t × $220 = $1,320/ha; variable costs = 120 + 260 + 90 + 110 + 80 + 40 = $700/ha.
2. Gross margin = 1,320 − 700 = $620/ha (46.97% of output).
3. For 20 ha: $12,400.

**Result:** The crop leaves a gross margin of $620 per hectare, or $12,400 across 20 ha, to cover fixed costs and profit.

## What the result means

A positive gross margin contributes to fixed costs (rent, depreciation, permanent staff) and profit. Compare margins per hectare when choosing between crops.

## Assumptions and limits
- All figures are per the same area unit.
- Fixed costs such as rent, depreciation and overheads are excluded by definition.
- Gross margin is not profit; it ignores fixed costs and the farmer’s own labour.

## Questions

### What is the difference between gross margin and net profit?

Gross margin subtracts only variable costs. Net profit also subtracts fixed costs such as rent, machinery depreciation, interest and overheads.

### Is my own labour a variable cost?

Usually not; casual or contract labour hired for the crop is. Keep your own time as a fixed cost or account for it separately.

## Related calculators
- [Harvest Revenue Calculator](https://calculators.geekmidst.com/calculators/harvest-revenue-calculator)
- [Crop Yield per Acre Calculator](https://calculators.geekmidst.com/calculators/crop-yield-per-acre-calculator)
- [Profit Margin Calculator](https://calculators.geekmidst.com/calculators/profit-margin-calculator)
- [Break-even Calculator](https://calculators.geekmidst.com/calculators/break-even-calculator)

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/farm-gross-margin-calculator