{
  "slug": "feedlot-cost-of-gain",
  "title": "Feedlot Cost of Gain Calculator",
  "heading": "Feedlot Cost of Gain Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/feedlot-cost-of-gain",
  "summary": "Dollar cost per pound of gain from ration cost and feed conversion.",
  "description": "Cost of gain is the number that determines whether putting more pounds on an animal makes money, independent of what you paid for the animal in the first place. This calculator converts a daily ration cost per head and the feed conversion ratio (pounds of feed per pound of gain) into a straightforward cost per pound of gain, then adds yardage to get an all-in number you can compare directly against expected market price for the added weight. Feed conversion in finishing cattle commonly runs 5.5-7.5 lb of dry matter per lb of gain depending on ration energy density, cattle type, and time on feed, and small conversion improvements move this number more than most people expect.",
  "formula": "Cost of gain ($/lb) = (daily ration cost + daily yardage) ÷ average daily gain.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=feedlot-cost-of-gain",
  "inputs": [
    {
      "id": "rationCostDay",
      "label": "Daily ration cost",
      "kind": "number",
      "hint": null,
      "default": 4.2,
      "unit": "$/head",
      "min": 0.5,
      "max": null
    },
    {
      "id": "yardageDay",
      "label": "Daily yardage",
      "kind": "number",
      "hint": null,
      "default": 0.45,
      "unit": "$/head",
      "min": 0,
      "max": null
    },
    {
      "id": "adg",
      "label": "Average daily gain",
      "kind": "number",
      "hint": null,
      "default": 3.4,
      "unit": "lb",
      "min": 0.5,
      "max": null
    },
    {
      "id": "marketPriceLb",
      "label": "Expected market price for the gain",
      "kind": "number",
      "hint": null,
      "default": 1.9,
      "unit": "$/lb",
      "min": 0.5,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "cogLb",
      "label": "Cost per pound of gain",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "marginLb",
      "label": "Margin per pound of gain",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "dailyMargin",
      "label": "Margin per head per day",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "dailyCost",
      "label": "Total daily cost per head",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Daily ration cost: 4.2 $/head",
      "Daily yardage: 0.45 $/head",
      "Average daily gain: 3.4 lb",
      "Expected market price for the gain: 1.9 $/lb"
    ],
    "outputs": [
      "Cost per pound of gain: $1.368",
      "Margin per pound of gain: $0.532",
      "Margin per head per day: $1.81",
      "Total daily cost per head: $4.65"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter daily ration cost ($/head).",
      "Enter daily yardage ($/head).",
      "Enter average daily gain (lb).",
      "Enter expected market price for the gain ($/lb).",
      "Read your cost per pound of gain on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "rationCostDay": 2.52,
        "yardageDay": 0.27,
        "adg": 2.04,
        "marketPriceLb": 1.14
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "rationCostDay": 4.2,
        "yardageDay": 0.45,
        "adg": 3.4,
        "marketPriceLb": 1.9
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "rationCostDay": 6.720000000000001,
        "yardageDay": 0.7200000000000001,
        "adg": 5.44,
        "marketPriceLb": 3.04
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why is cost of gain more useful than total feed cost?",
      "a": "It normalizes for pace of gain, so you can compare two very different rations or two different classes of cattle on equal footing. A ration that costs more per day but produces faster gain can still have a lower cost per pound than a cheaper, slower ration."
    },
    {
      "q": "How much does feed conversion efficiency swing cost of gain?",
      "a": "Enormously — moving feed conversion from 7.0 to 6.0 lb feed per lb gain on the same ration price cuts cost of gain by roughly 14%, which is why bunk management and ration consistency matter as much as ingredient shopping."
    },
    {
      "q": "What if cost of gain is higher than market price?",
      "a": "That means every additional pound put on the animal loses money at current prices, which happens periodically when corn spikes or fed cattle prices drop. In that scenario, marketing cattle earlier and lighter, if the contract allows it, can preserve more margin than continuing to feed."
    },
    {
      "q": "Does this apply to backgrounding as well as finishing?",
      "a": "Yes, the formula is identical — just use backgrounding ration cost and the lower ADG typical of growing rations (often 2-3 lb/day on high-roughage diets) instead of finishing rations, which usually see faster gain on higher-energy feed."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/cattle-breakeven-price",
    "https://www.revenuelab.fyi/toolbox/dairy-feed-cost-per-cwt",
    "https://www.revenuelab.fyi/toolbox/calf-weaning-weight-value"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Feedlot Cost of Gain Calculator (https://www.revenuelab.fyi/toolbox/feedlot-cost-of-gain)"
}