Calculate your farm's net profit, profit margin and return on revenue instantly. Enter your total revenue and total costs to get a complete profit breakdown — including whether your margin is healthy by industry benchmarks.
Farm profit is the amount left over after all costs are deducted from total revenue. It's the single most important number in your farm business — but margin percentage matters just as much as the dollar figure.
A mixed cropping and sheep farm in southern NSW generates $850,000 revenue from wheat, canola and prime lamb. Total costs including agronomy, labour, machinery and land rent come to $620,000.
At 27.1%, this farm is performing above the typical broadacre benchmark of 15–25%. The cost ratio of 72.9 cents in the dollar is healthy — most viable farms operate between 70–85 cents per dollar of revenue.
A net profit margin of 15–25% is considered healthy for most broadacre grain and livestock farms in Australia. Intensive operations like horticulture, dairy or poultry can target higher margins. Margins consistently below 10% indicate financial stress and difficulty servicing debt.
Include all variable costs (seed, fertiliser, chemicals, fuel, casual labour, contract work, freight) and all fixed costs (land rent or mortgage interest, permanent wages, insurance, rates and taxes, vehicle registration, depreciation on machinery and infrastructure). Don't forget owner's drawings if you pay yourself a wage.
Profit is revenue minus all costs including non-cash items like depreciation. Cash flow is actual money in versus money out. A farm can be profitable but cash-flow negative if large loan repayments or capital purchases consume cash. Both metrics matter — use the Farm Profit calculator for profitability and track bank statements for cash flow.
This calculator gives pre-tax profit, which is the standard for farm performance benchmarking. Tax is calculated on taxable income which differs from accounting profit due to primary producer tax concessions, depreciation schedules and income averaging. Consult your accountant for after-tax figures.