Cost of Gain Calculator

Formula

The formula to calculate the Cost of Gain is:

\[ COG = \frac{FC - IC}{WG} \]

Where:

$COG$ is the cost of gain in dollars per pound
$FC$ is the final cost of the animal in dollars
$IC$ is the initial cost of the animal in dollars
$WG$ is the weight gain of the animal in pounds

What is Cost of Gain?

Cost of Gain (COG) is a financial metric used in the livestock industry, particularly in cattle farming, to measure the cost incurred to increase the weight of an animal. It is calculated by dividing the total cost of feed and other expenses associated with weight gain by the total pounds gained. This metric is crucial for farmers as it helps them understand the profitability of their feeding strategies and make informed decisions about their operations.

Example Calculation 1

Let's assume the following values:

Final Cost of the Animal (FC) = $1500
Initial Cost of the Animal (IC) = $1000
Weight Gain of the Animal (WG) = 200 lb

Using the formula:

\[ COG = \frac{1500 - 1000}{200} = \frac{500}{200} = 2.50 \text{ dollars per pound} \]

The Cost of Gain is $2.50 per pound.

Example Calculation 2

Let's assume the following values:

Final Cost of the Animal (FC) = $2000
Initial Cost of the Animal (IC) = $1200
Weight Gain of the Animal (WG) = 300 lb

Using the formula:

\[ COG = \frac{2000 - 1200}{300} = \frac{800}{300} = 2.67 \text{ dollars per pound} \]

The Cost of Gain is $2.67 per pound.