- Welcome. This free Calculator allows you to build gross margins for crop and livestock enterprises.
- Please Register for a free account, this will allow you to login and then save, edit, compare and return to your gross margins.
- You may also continue as an unregistered guest to view and print your gross margin, but you will not be able to save, edit, compare or return to your calculation.
Introduction to Gross Margins
The TechTalk Gross Margin Calculator (GMC) has two sections: a Livestock Gross Margin Calculator and a Crops Gross Margin Calculator.
A Gross Margin is the calculated difference (margin) between the value of the OUTPUT of an enterprise less the variable costs (INPUT expenses) used to produce that output. A Gross Margin is well known as a reliable but simple gauge of how well an enterprise is working in financial terms: It acts as a single-figure indicator of the technical performance of an enterprise, the economic environment in which it is operating and the relative financial success of the management choices being made. As such (providing that fixed costs are similar), Gross Margins may be used to:-
- Assess the performance of a single enterprise, in the same project or on the same farm, in different seasons or years.
- Compare the performance of different enterprises in the same project or on the same farm, in different seasons or years.
- Compare the performance of similar enterprises in different projects or on different farms, in different seasons or years.
At first glance, running a Gross Margin Calculation may seem like a lot of work in fact, providing you have your data to hand and take each step at a time, it is a straightforward process. You can read our Training Notes for more help - these notes also include links to Recording Sheets which will be useful for compiling your data. You are also welcome to Contact Us for more assistance in using the calculators or interpreting the results.
All users will get immediate answers and global enterprise averages after data entry. Registered TechTalk users, who have logged in with their username and password, will receive downloadable breakdowns of their performances, up-to-date league tables of similar enterprises (by country and farming system) and access to storage files for their data, which they may revisit at any time.
Before using the calculator, all users should refer to the simple Crop/Livestock Data Checklists (see the boxes at the top of the New Crop GM and New Livestock GM pages), which itemise the types of data required. Entering all data requested by the calculators will generate a complete gross margin but you can also carry out partial data entry to investigate specific aspects of the enterprise that you are interested in.