Feedlot Cost of Gain Calculator

About the Feedlot Cost of Gain Calculator

The Feedlot Cost of Gain Calculator determines how much it costs to add each pound of body weight during the finishing phase. Cost of gain (COG) is the fundamental metric for evaluating feedlot profitability — it represents the total non-purchase cost divided by pounds gained, expressed in dollars per pound.

Cost of gain includes feed, yardage, health, interest on capital, and death loss allocated across each pound of weight added during the finishing period. Feed cost is typically 70-80% of total cost of gain. At current feed prices, feedlot cost of gain commonly ranges from $0.90 to $1.40 per pound.

This page converts feed, yardage, health, and finance costs into a per-pound gain number that you can compare directly with the value of additional weight.

When This Page Helps

Feedlot decisions usually hinge on whether the next pound is profitable. This page gives that comparison in the format closeouts actually use.

How to Use the Inputs

1. Enter total feed cost per head during the feeding period.
2. Enter yardage, health, interest, and other costs per head.
3. Enter the placement weight and sale weight.
4. Review cost of gain per pound.
5. Compare against current market prices to determine profitability.

Example Calculation

Tips & Best Practices

• Track feed cost of gain separately from total cost of gain to evaluate ration efficiency.
• Feed conversion ratio is the biggest driver of COG — improve it through ration optimization.
• Consider ionophores and beta-agonists where legal to improve feed efficiency.
• COG increases late in the feeding period as cattle deposit more fat and convert less efficiently.
• Compare your COG against custom feedyard bids to evaluate retained ownership vs custom feeding.
• High corn prices directly increase COG — watch commodity markets closely.

Breaking Down Cost of Gain

Feed typically accounts for 70-80% of total COG. Yardage represents 10-15%. Health, interest, and death loss make up the remaining 10-15%. Focusing on feed cost and feed efficiency yields the largest improvement in COG.

COG Changes During the Feeding Period

COG is not constant — it increases as cattle get heavier. In the first 60 days, cattle gain efficiently with lower COG. In the last 30 days before marketing, COG often increases 20-30% as cattle deposit expensive marbling fat. Understanding this curve helps optimize selling time.

Closeout Analysis

After every lot is sold, calculate actual COG and compare to projections. Consistent tracking of actual vs projected COG reveals whether ration changes, health protocols, or seasonal effects are improving or worsening performance. This data drives continuous improvement in feedlot profitability.

Frequently Asked Questions

• What’s a typical feedlot cost of gain?

  Feedlot COG typically ranges from $0.90-$1.40/lb depending on corn and feed ingredient prices. When corn is below $4/bu, COG is at the lower end. When corn exceeds $6/bu, COG can exceed $1.30/lb.

• How does feed conversion affect COG?

  Feed conversion is the single largest driver. If cattle eat 20 lbs of dry matter per day at $0.12/lb DM, daily feed cost is $2.40. At 6:1 conversion, feed COG is $0.72/lb. At 7:1, it’s $0.84/lb — a significant difference.

• Does COG include the purchase price?

  No. Cost of gain measures only the cost of adding weight — feed, yardage, health, interest, and death loss. Break-even price includes both the purchase cost and cost of gain spread across total sale weight.

• When should I sell based on COG?

  Sell when the marginal cost of the next pound of gain exceeds its expected market value. COG typically increases as cattle approach finish weight because feed efficiency declines as fat deposition accelerates.

• How does weather affect COG?

  Cold weather increases maintenance energy requirements, reducing the proportion of feed energy directed to gain. Mud reduces intake and increases energy needed for locomotion. Both raise COG. Summer heat stress reduces intake and gain.

• What are typical yardage charges?

  Commercial feedyards charge $0.40-$0.75/head/day for yardage. This covers facility use, pen maintenance, equipment, and daily care. At $0.50/day over 150 days, yardage adds $75/head or about $0.12/lb of gain.