How to calculate broiler profit before you start a cycle

Profit should be estimated before birds enter the house. A simple budget can expose a weak margin early and show which costs deserve the closest attention.

Start with the number of birds

Write down your planned placement. Then make a realistic assumption for mortality based on your farm's history and management plan. Do not calculate revenue as though every placed bird will necessarily reach sale.

Build the cost side

Include day-old chicks, feed, vaccines and other health inputs, litter, labour, electricity or fuel, transport, water, equipment costs and other expenses that actually apply to your farm. Separate one-off capital expenses from the cost of the current cycle.

Estimate revenue

Revenue depends on the number of birds sold, sale weight or pricing method and the market price you expect. Because poultry prices can change, test your budget at more than one selling price instead of relying on one optimistic figure.

Then calculate the margin

Subtract your cycle costs from estimated revenue. If the result is small, run a sensitivity check: what happens if feed costs rise, mortality increases, sale price falls or average weight is lower than expected?

Use actual records to improve the next estimate

The most valuable budget is the one you update with real farm numbers. Compare planned versus actual feed use, mortality, average weight, medication costs and selling price after each cycle.