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Net profit per head equals sale revenue minus total cost of production including purchase/acquisition, feed, veterinary, labor, and overhead allocated per animal.
Net Profit/Head = Sale Price − Total Cost of Production per HeadFor feedlot operations, cost of gain measures the cost to add each pound of weight. Compare cost of gain against expected sale price per pound to determine if additional feeding is profitable.
Cost of Gain = Feed & Yardage Costs / Pounds GainedThe minimum sale price needed to cover all costs. Feedlot operators calculate break-even daily to decide marketing timing as cattle approach target finish weight.
Break-Even Price = Total Cost per Head / Sale Weight (cwt or lbs)Updated: July 2026
Purchased 500-lb steers, grazed 120 days, sold at 750 lbs.
→ Net profit: ~$113/head | Cost of gain: ~$0.72/lb
Custom-fed Holstein steers on high-concentrate ration for 160 days.
→ Net profit: ~$367/head | Cost of gain: ~$0.88/lb
Annual profit per cow based on weaned calf sale minus cow maintenance costs.
→ Net profit: ~$665/cow — typical for efficient cow-calf operations
Auction commission (2–3%), trucking ($3–$5/mile loaded), and health processing at arrival add $50–$100/head. These costs must be in the acquisition cost basis from day one.
Feedlot death loss averages 1–2%; morbidity reduces gain in affected pens. Spread death loss cost across surviving cattle — a 2% death loss on a $1,500 calf adds $30/head to surviving animals' cost basis.
Always calculate cost of gain and break-even on a per-pound basis at expected sale weight. A profitable purchase price can become a loss if cost of gain exceeds the market's price slide.
Calculate net profit per head by subtracting all production costs from sale revenue for cattle, hogs, sheep, or other livestock. Per-head profit analysis helps ranchers and feedlot operators decide whether to sell now, background further, or retain ownership through finishing.