How to Calculate Monthly Profit per Dairy Cow
By Saleh Kamal Al-Saleh, dairy farm and cheese factory owner, founder of Lebnara · Last updated:
Many farm owners know the herd total but not which cow earns and which loses. A cow that produces a lot and eats even more can be less profitable than an average cow on less feed. Here is a simple method you can apply on paper or in software.
The formula
Monthly cow profit = milk revenue - feed cost - veterinary and medicines - labour share - overhead share - cow depreciation (if you count it).
- Milk revenue = monthly milk volume x the actual price per litre you sell at.
- Feed = what the cow actually eats of concentrate and forage, usually the largest item on a dairy farm.
- Veterinary = insemination, vaccination, treatment and tests.
- Labour and overhead = a fair split across the number of cows.
Hypothetical example
Illustrative numbers only. A cow producing 22 litres a day (660 litres a month) with milk at 0.45 JOD per litre.
| Item | Monthly value (JOD) |
|---|---|
| Milk revenue | 297 |
| Feed | 120 |
| Veterinary | 12 |
| Labour and overhead | 55 |
| Profit before depreciation | 110 |
What to do with the result
- Compare your cows with each other: a consistently low-profit cow is a candidate for a nutrition or health review, or culling.
- Compare feed cost per litre of milk: a high figure signals an uneconomic ration. Try the feed ration calculator.
- Watch cows whose output drops suddenly; they may have mastitis or heat stress.
How Lebnara calculates it
The farm module records daily milk, expenses, feed and health, and shows a profitability report combining costs and revenue so you can compare the whole herd instead of relying on memory.
Frequently asked questions
- Should I include cow depreciation?
- Ideally yes for a full picture, but you can start with profit before depreciation and add it later once you set the purchase value and productive life.
- How do I allocate labour to cows?
- Divide total monthly labour by the number of lactating cows, or use a fixed share agreed with your accountant.
Find a cheaper ration for your cows
Feed is the biggest item in cow profit. Try the calculator.