Grain Storage Returns Calculator
Return to on-farm storage from basis improvement and costs.
About this calculator
This calculator answers the core storage question every grain producer faces at harvest: does holding the crop and selling later actually pay, once you account for what storage costs? The math starts with price gain — your expected selling price minus the harvest price — then subtracts two real costs: a flat storage cost per bushel per month times the months stored, plus an interest cost that treats the harvest price itself as capital tied up, charged at your annual interest rate prorated for the storage period. Net return per bushel is price gain minus those combined costs, and multiplying by bushels stored gives the total dollar return across your whole crop.
The breakeven selling price shows the minimum price you'd need to receive just to cover storage and interest — sell below that and storage cost you money even if the price technically rose. Annualized return converts the whole-period return into a yearly percentage rate so you can compare storing grain against other uses of capital, like paying down debt or a CD. The biggest assumption baked in is that "expected selling price" is a single number you supply — the calculator can't forecast where the market is headed, so the output is only as good as your own price outlook, and a common mistake is plugging in a hoped-for price rather than a realistic target based on carry and basis patterns.
Inputs
Results
Net return ($/bu)
0.25
How to Use This Calculator
- Enter Harvest Price and Expected Selling Price Per Bushel from storage.
- Enter Storage Cost Per Bushel Per Month, Months Stored, Bushels Stored, and Interest Rate.
- Review Net Return Per Bushel and Total Net Return from storing the grain.
- Check Breakeven Selling Price — the minimum you need to receive to cover storage and interest costs.
- Use Annualized Return percentage to compare grain storage against other investment options.
How the result changes with Expected sale price ($/bu)
| Expected sale price ($/bu) | Net return ($/bu) |
|---|---|
| 2.9 | -2.65 |
| 4.35 | -1.2 |
| 8.7 | 3.15 |
| 15 | 9.45 |
What each input means
- Harvest price ($/bu)
- Cash price available at harvest.
- Expected sale price ($/bu)
- Expected cash price at time of sale.
- Storage ($/bu/mo)
- Monthly storage cost per bushel.
- Months stored
- Number of months grain is held in storage.
- Bushels stored
- Quantity of grain stored.
- Interest rate (%)
- Annual interest rate on operating capital.
What each result means
- Net return ($/bu)
- Profit per bushel from storing (price gain - costs).
- Total net return ($)
- Total profit from storing all bushels.
- Total cost ($/bu)
- Storage plus interest cost per bushel.
- Breakeven price ($/bu)
- Minimum selling price to justify storing.
- Annualized return (%)
- Return on investment annualized.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersHarvest price ($/bu) = 5.2, Expected sale price ($/bu) = 5.8, Storage ($/bu/mo) = 0.04, Months stored = 5 = 6 input(s) provided
- Calculate Net returnNet return = priceGain - totalCost0.2483 = 0.2483
- Calculate Total net returnTotal net return = round(netReturn * bushels * 100) / 1002483.33 = $2,483.33
- Calculate Total costTotal cost = storageCost + interestCost0.3517 = 0.3517
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.
Frequently Asked Questions
Why does the interest cost use my harvest price instead of my actual storage bill?
The interest cost represents the opportunity cost of the capital tied up in the grain itself — while it sits in the bin, the cash you'd get from selling it at harvest price is unavailable for other uses, so the calculator charges your annual interest rate against that harvest-price value, prorated for the fraction of a year you store. This is added on top of, not instead of, the flat per-bushel storage fee.
What exactly does the breakeven selling price tell me?
It's the harvest price plus your total storage and interest cost per bushel — the minimum price you'd need to receive when you sell to come out even on the decision to store rather than sell at harvest. Sell below that number and storage actually cost you money even if your selling price is higher than the harvest price in raw dollar terms.
How is the annualized return percentage useful if I'm only storing for a few months?
It takes your net return per bushel, divides by the harvest price to get a period return, then scales it up by 12 divided by the months stored so a 5-month holding period is expressed as an equivalent yearly rate. That lets you compare storing grain against other short-term uses of your capital, like paying down an operating loan, on the same annualized basis.
Why could my net return come out negative even though my expected selling price is higher than my harvest price?
A positive price gain isn't enough by itself — it also has to cover the combined storage-fee and interest cost over the holding period. If that gap between expected and harvest price is smaller than what storage and interest add up to, net return per bushel goes negative even though the raw price technically rose.
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