Cost Of Cultivation Calculator

Work out cost of cultivation instantly with clear inputs, formula shown and shareable results.

About Cost Of Cultivation Calculator

Cost of cultivation adds the three variable cost blocks — inputs, labour and machinery or irrigation — and then a 10% allowance for interest on working capital, land revenue, insurance and incidentals. This is the A2+FL style operating cost against which gross returns should be judged.

Formula

Cost of cultivation

Cost per ha = inputs + labour + machinery, plus 10% overhead and interest allowance

Worked example

With the default values below, Cost Of Cultivation Calculator returns Cost Of Cultivation Per Hectare of $57,200.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Seed, Fertiliser And Crop Protectionminimum 0 per ha: 22,000 per ha
Labour Costminimum 0 per ha: 18,000 per ha
Machinery, Irrigation And Fuelminimum 0 per ha: 12,000 per ha
Area Cultivatedminimum 0.01 ha: 3 ha

Results

Cost Of Cultivation Per Hectare: $57,200.00
Total Cost For The Area: $171,600.00
Cost Per Acre: $23,148.02
Overhead And Interest Allowance: $5,200.00

Step by step

1Values used
2Cost of cultivation
3Cost Of Cultivation Per Hectare= 57,200.00
4Total Cost For The Area= 171,600.00
5Cost Per Acre= 23,148.02
6Overhead And Interest Allowance= 5,200.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should imputed family labour be counted?

Yes if you want a true economic cost. Official A2+FL costing values family labour at the prevailing wage; leaving it out flatters profitability.

Should land rent be included?

Include it for owned land as an opportunity cost if you are comparing crops against leasing the land out. For a simple cash-flow view, use paid rent only.