Break-Even Price Calculator

How to Use This Calculator

Enter your total production costs for the season and the total acres planted. Then enter your expected yield per acre in bushels (or other units). The calculator divides total costs by total production to show the minimum price you must receive to cover expenses.

Why This Matters

Break-even price is the single most important number for grain marketing decisions. If the market price is above your break-even, you are profitable. Knowing this number before harvest helps you set forward contract prices, evaluate hedging strategies, and avoid selling at a loss.

Methodology

Total bushels = Acres × Expected yield per acre. Break-even price = Total production costs / Total bushels. Cost per acre = Total costs / Acres. This gives the minimum selling price where revenue exactly equals expenses with zero profit.

Common Mistakes to Avoid

• Using optimistic yield estimates — calculate break-even at both average and below-average yields.
• Not including marketing, storage, and transportation costs in total production costs.
• Forgetting to recalculate break-even as input costs change during the season.
• Comparing break-even to cash price without accounting for basis (local price difference from futures).