A dairy herd's profitability hinges on the gap between milk revenue and the daily running costs of feed, labor, health, and utilities. Because feed alone typically eats up more than half of dairy revenue, this calculator breaks costs into separate categories so you can see exactly where your margin is being spent.
Daily Revenue = Number of Lactating Cows × Average Milk per Cow × Selling Price. Daily Cost = (Feed Cost per Cow + Labor Cost) + [(Veterinary + Electricity/Water + Other Expenses) ÷ 30]. Net Profit = Revenue − Cost, shown both daily and projected monthly.
| Cost Category | Share of Total Cost |
|---|---|
| Feed & fodder | 55-65% |
| Labor | 15-20% |
| Veterinary & breeding | 5-8% |
| Utilities & other | 10-15% |
For a 15-cow herd averaging 14 liters/cow/day at PKR 190/liter: Daily revenue = 15 × 14 × 190 = PKR 39,900. If feed costs PKR 700/cow/day, labor PKR 2,000/day, and vet/utilities/other total PKR 15,000/month (≈PKR 500/day): Daily cost = (15 × 700) + 2,000 + 500 = PKR 13,000, leaving a daily profit of roughly PKR 26,900, or about PKR 807,000 per month before capital costs like shed construction or cow purchase.
Small commercial dairy herds (10-30 cows) in Pakistan typically net 25-35% of milk revenue as profit once feed, labor, and health costs are covered, provided milk yield stays above 10-12 liters/cow/day.
Feed usually accounts for 55-65% of total dairy operating cost, which is why even small improvements in feed efficiency — better fodder quality or reduced wastage — have an outsized effect on the bottom line compared to other cost categories.
Management usually has a bigger short-term impact. A high-yielding breed fed and housed poorly will underperform a moderate breed that is well fed, properly housed, and on a consistent milking schedule.
This calculator covers the running cost of your current lactating herd. Replacement heifer rearing is a separate long-term investment cost and is best tracked in its own budget rather than folded into daily operating profit.