Precision Ag ROI Calculator
Estimate the return on investment from precision agriculture technology including yield gains and input savings.
Inputs
$
$
acres
%
bu/ac
$/bu
%
$/ac
Results
Annual Total Benefit
$59,550.00
≈ 5 years of state college
Payback Period
0.4 years
Benefit per Acre$39.70
Net Return (Year 1)$31,550.00
Net Return (Year 2+)$56,550.00
5-Year ROI644.4%
How to Use This Calculator
- Enter Equipment / Technology Cost, Annual Subscription / Maintenance, and Total Acres Managed.
- Set Expected Yield Increase, Base Yield, and Crop Price.
- Adjust Input Cost Savings, Base Input Cost as needed.
- Review Annual Total Benefit ($) and Payback Period (years).
- Use Benefit per Acre ($) and Net Return (Year 1) ($) to inform your decision.
How the result changes with Total Acres Managed
| Total Acres Managed | Annual Total Benefit | Payback Period |
|---|---|---|
| 5,009 | $198,857.30 | 0.1 years |
| 17,507 | $695,027.90 | 0 years |
| 32,504 | $1,290,408.80 | 0 years |
| 45,001 | $1,786,539.70 | 0 years |
What each input means
- Equipment / Technology Cost
- One-time cost for GPS, sensors, or VRT equipment.
- Annual Subscription / Maintenance
- Yearly software, data, or service fees.
- Total Acres Managed
- Acres benefiting from the technology.
- Expected Yield Increase
- Estimated percentage yield improvement.
- Base Yield
- Current average yield without the technology.
- Crop Price
- Expected market price per bushel.
- Input Cost Savings
- Estimated reduction in seed, fertilizer, or chemical costs.
- Base Input Cost
- Current input cost per acre.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersEquipment / Technology Cost = 25000, Annual Subscription / Maintenance = 3000, Total Acres Managed = 1500, Expected Yield Increase = 3 = 8 input(s) provided
- Calculate Annual Total BenefitAnnual Total Benefit59550 = $59,550
- Calculate Payback PeriodPayback Period0.4 = 0.4
- Calculate Benefit per AcreBenefit per Acre39.7 = $39.7
- Calculate Net ReturnNet Return31550 = $31,550
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