Enter the total revenue from selling the pig and the total cost to raise the pig into the calculator to determine the pig profit.
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Pig Profit Formula
The following formula is used to calculate the estimated profit from selling a pig.
P = TR – TC
- Where P is the pig profit ($)
- TR is the total revenue generate from selling the pig ($)
- TC is the total cost to raise the pig ($)
The total revenue generated from a pig can be estimated by the weight of the pig. Pigs typically sell from $2.50 to $3.50 per pound, so a pig weighing 200 pounds would sell for $500-$700.
The total cost to raise the pig varies depending on what type of overhead is used in the calculation, but for the most part, the costs include the feed and land they use to raise the pig.
What is a pig profit?
A pig profit, just like any other profit, is a measure of the total revenue minus costs that one pig generates.
How to calculate pig profit?
The following example outlines the steps required to estimate the profit earned by one pig.
First, determine the weight of the pig. In this example, the weight of the pig is 400 lbs.
Next, determine the total selling price per pound of the pig. For this example, the selling price was $3.00 per pound.
Next, calculate the total revenue by multiplying the price per pound by weight. This yields a revenue of $1200.00.
Next, determine the total cost to raise the pig. In this case, it cost $800.00 total to raise the pig.
Finally, calculate the pig profit using the formula above:
P = TR – TC
P = 1200 – 800
P = $400 profit