Gross Margin Calculator

Calculate gross revenue and gross margin per acre and per unit using yield, market price, and variable costs.

Expected Yield (bushels or tons per acre) Market Price ($ per unit) Total Variable Costs per Acre ($)

Gross Revenue = Yield × Market Price

Gross Margin = Gross Revenue − Variable Costs

Gross Margin per Unit = Gross Margin ÷ Yield

What is gross margin?

Gross margin is revenue minus variable costs. It shows how much money remains to cover fixed costs and profit.

Why exclude fixed costs?

Gross margin focuses on short-term profitability and operational efficiency, separate from long-term overhead.

Is gross margin the same as profit?

No. Profit accounts for both variable and fixed costs. Gross margin only subtracts variable costs.

About Gross Margin

Gross margin is a key financial indicator in crop production. It measures the difference between revenue and variable input costs.

Monitoring gross margin helps producers compare crops, evaluate input efficiency, and make informed management decisions.