Dairy Milk Cost Calculator
Work out the true cost of producing one litre of milk and the profit on the litres you sell at your chosen price.
Recent
Formula
How the calculation works
The calculator divides the total monthly cost of keeping and feeding the animals by the litres produced that month to get the cost of one litre.
It subtracts that cost per litre from the selling price to show the profit made on each litre.
The profit per litre is then multiplied by the litres sold to give the total monthly profit and revenue.
Common mistakes
- Leaving out the owner's own labour and the cost of the shed, which are real expenses even when no cash is paid out.
- Comparing a high yield month with a low yield month, since the cost per litre moves sharply when milk production changes.
When to use it
- Dairy farmers use it to check whether the price offered by a milk collector covers feed, labour and veterinary costs.
- Smallholders use it to compare the cost of keeping a cow against the monthly milk income before adding another animal.
Worked example
With a monthly cost of 60000 taka to produce 1000 litres, the cost is 60 taka per litre, and selling 1000 litres at 70 taka gives 10 taka profit per litre, 70000 taka revenue and 10000 taka profit.
Common questions
Which costs belong in the monthly cost?
Feed, fodder, labour, medicine and shed upkeep should all be counted, because each one affects the real cost of a litre of milk.
Related tools
-
Invoice Total
The total on an invoice after a discount and a tax, with tax charged on the discounted amount.
-
Home Office Deduction Calculator
How much of a household bill a home workspace can claim, by area.
-
Commission Calculator
Works out the commission on a sale from the price and rate and shows the net amount left after the commission and any other deductions.
-
Daily Sales Balance Calculator (Bangladesh)
Adds up the day's cost of goods, delivery and other expenses and subtracts them from total sales to show the net amount left at closing time.
-
Distributor Margin Calculator (Bangladesh)
Compares the distributor price with the dealer price and shows the margin per unit plus the margin percentage after transport cost.
-
Ecommerce Profit Calculator (Bangladesh)
Subtracts product cost, delivery, cash-on-delivery charge and packaging from the sale price to show your true profit on one online order.
-
Inventory Reorder Calculator
Find the stock level that should trigger a new purchase by combining daily sales, supplier lead time and safety stock.
-
Markup vs Margin Calculator
Shows the markup percentage and the margin percentage for the same sale, so you can see why one price has two very different percentages.