farmcfo.com.au/tools/extra-block · 0412 759 847Will the extra block pay?
Enter the block's area and price, the gross margin per hectare the stock on it should earn, the extra costs it adds, and the finance terms. The calculator shows the profit after interest, the cash left after principal and interest repayments, and the gross margin per hectare the block needs to cover its repayments.
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- Price and loan
- $1,500,000
- Gross margin from the block
- $75,000 a year
- Profit after interest
- -$26,760 a year
- Cash after repayments
- -$53,640 a year
- Gross margin needed to break even on cash
- $515/ha
Loan $1,200,000. Cash needed $375,000 for the deposit and buying costs.
First-year interest $86,760.
Repayments $113,640 a year, principal and interest.
The example is an invented 250 ha block at $6,000/ha with 5% buying costs, a 20% deposit, a 7.23% rate (RBA, August 2026) over 20 years, $300/ha gross margin and $15,000 a year of extra running costs. Gross margins for your enterprise are in the NSW DPI livestock budgets and our gross margin calculators.
The working
- Loan = price - deposit. Repayments are principal and interest over the term.
- Gross margin from the block = gross margin per hectare x hectares.
- Profit after interest = gross margin - extra running costs - first-year interest.
- Cash after repayments = gross margin - extra running costs - yearly repayments.
- Gross margin needed = (yearly repayments + extra running costs) / hectares.
General information only. This calculator doesn't take account of your circumstances and isn't tax, credit or financial product advice. Check figures with your accountant before relying on them.
Want the numbers done for you?
Farm CFO builds the budget, the monthly cashflow and the tests your lender will run, at a fixed price.
Read next: Buying the neighbour's block
Questions
The block doesn't cover its repayments. Is that a no?
Not always. Principal builds equity, and a block can lift the whole farm's efficiency. But the shortfall has to come from the rest of the business, so test that in a whole-farm cashflow.
Which gross margin should I use?
Your own, from the enterprise you'd run on the block, in an average season. Our sheep gross margin calculator and the NSW DPI budgets are starting points.