Enterprise Budget & What Does One Crop Earn?
Compares crops
Enter one crop's per-acre revenue and costs to get the gross margin and net return per acre, plus the total net for your area — the standard way to compare what to grow.
Build your enterprise budget
Next: this enterprise covers all costs — scale the acreage or push yield to grow the ₹70,000 surplus.
Gross margin (revenue minus variable cost) tells you whether the crop pays its way-to-cash; net subtracts fixed/overhead costs that you carry regardless of cropping decisions.
Enterprise budget — key facts
- Gross margin
- revenue − variable costs
- Net return
- gross margin − fixed costs
- Cash decision
- guided by gross margin
- Whole-farm decision
- guided by net return
- Compare
- budgets to choose the crop
- Total net
- net per acre × area
- Basis
- per acre, any currency
- Privacy
- Runs in your browser; nothing uploaded
One crop, laid out acre by acre
An enterprise budget is the cleanest way to see what a crop really earns. On one page it sets out the revenue per acre, subtracts the variable costs to give the gross margin, then subtracts the fixed costs to give the net return. That two-step structure is deliberate: the gross margin answers the cash question — given the land and kit you already have, which crop adds most this season — while the net return answers the whole-farm question of whether the enterprise covers its full share of overheads. Comparing the budgets of rival crops, rather than just their yields or prices, is how good growers decide what to plant.
This tool computes the gross margin and net return per acre, and the total net for your area, in 8 currencies. Use it to compare candidate crops on equal footing, to test a price or cost change, and to plan your rotation. Pair it with the Gross Margin, Cost of Cultivation and Crop Comparison tools to plan the whole farm's finances.
See the real margin
Revenue minus variable costs, per acre.
Test full profitability
Net return after fixed costs too.
Compare what to grow
Rank crops on the same per-acre basis.
Scale to your farm
Total net across your whole area.
Frequently Asked Questions
What is an enterprise budget?+
An enterprise budget lays out the full per-acre economics of a single farm enterprise — one crop or livestock activity. It lists the revenue it generates and the costs it incurs, split into variable and fixed, so you can see exactly what that enterprise earns. It's the building block farmers and advisers use to compare options and plan the whole farm.
How is gross margin calculated?+
Gross margin = revenue − variable costs. Variable costs are the ones that rise and fall with the crop — seed, fertiliser, sprays, casual labour, fuel. Gross margin is what the enterprise contributes towards fixed costs and profit, and because variable costs are the ones you control season to season, it drives the short-term cash decision of what to plant.
How is net return calculated?+
Net return = gross margin − fixed costs, or equivalently revenue − variable costs − fixed costs. Fixed costs (land rent, machinery depreciation, permanent labour, interest) don't change with the crop in the short run. Net return tells you whether the enterprise pays for its full share of the farm's overheads, which matters for the longer-term whole-farm decision.
Why separate gross margin from net return?+
Because they answer different questions. Gross margin guides the immediate cash decision — given the land and machinery you already have, which crop adds the most this season? Net return guides the whole-farm decision — over the long run, does this enterprise cover its full costs, including the fixed ones? Separating them stops you confusing a cash-positive crop with a truly profitable one.
How does this help me decide what to grow?+
Build an enterprise budget for each candidate crop and compare them on the same per-acre basis. The one with the highest gross margin adds most cash now; the one with the best net return is most profitable overall. Comparing budgets — not just yields or prices — is how you decide which enterprise deserves your land and inputs.
What are variable costs versus fixed costs?+
Variable costs change with the level of activity: seed, fertiliser, agro-chemicals, irrigation, casual labour, fuel and harvesting. Fixed costs stay roughly the same whatever you grow: land rent or its rental value, machinery depreciation, permanent staff, insurance and interest. Classifying costs correctly is what makes gross margin and net return meaningful.
What does total net mean?+
Total net is the net return per acre multiplied by your area, so you see the whole-enterprise result, not just the per-acre figure. It's useful for scaling decisions — a modest net per acre can still be a large total over many acres, and a high per-acre net on a tiny plot may not move the farm's bottom line much.
Can I use this for any crop or any country?+
Yes. The structure — revenue, variable costs, fixed costs, gross margin, net — is universal for any crop or enterprise. Just enter your own per-acre figures in your currency; the tool supports 8 currencies. It also works for a per-hectare or per-bigha analysis if you keep all the figures on the same area basis.
Is this a substitute for full farm accounts?+
No — it's a planning tool. An enterprise budget uses representative figures to compare options and plan, whereas your accounts record what actually happened. Use the budget to decide and to set targets, then check the outcome against real records and refine your assumptions for next season.