Some base assumptions have been set up on the calculator. These are for guidance only and should be adapted for your own situation.
The outcome will show a profit (or loss) on an enterprise on a $/ha basis. The higher the gross margin, the more profit you have.
This calculator, like all on the Soil Quality website has been simplified to provide guidance calculating a gross margin. Please note this calculator will only be as good as your assumptions.
A gross margin is the difference from the income minus your input costs. It is a measure of an enterprises contribution to a business. Gross margins are a base tool with many uses, ideal for testing assumptions, from profitability of different crops through to assisting in determining the value you are prepared to pay for a lease or purchase. They are also ideal for testing planned changes in management regimes, including those on soil health.