MSP income calculator
See what your crop earns at the MSP, what it costs to grow, and the margin in between — with both figures editable for your own numbers.
| Breakdown | Value |
|---|
Estimate. The method and sources are on this page — check them against your own case before you act.
How it is calculated
MSP income is a simple three-line sum: produce, price, cost. The interesting part is that the published cost of production already includes unpaid family labour, so the margin is an economic return rather than cash in hand.
Produce = area × yield · Revenue = produce × MSP · Cost = produce × cost per quintal · Net = revenue − cost
Calculate the produce
1 acre at 20 quintals an acre is 20 quintals. At the wheat MSP of ₹2,585, that is ₹51,700 of gross revenue.
Subtract the cost
The CACP cost of production for wheat in 2026-27 is ₹1,239 per quintal, so 20 quintals cost about ₹24,780. The net margin is roughly ₹26,920.
Read the margin carefully
Revenue of ₹51,700 against a cost of ₹24,780 is a 52% margin on revenue. That is because the wheat MSP of ₹2,585 is about 2.09 times the ₹1,239 cost of production — a 109% return over cost, matching the CACP figure published with the MSP. The 1.5-times-cost formula is the national floor; wheat's actual 2026-27 return is higher. If your own costs are higher, replace the cost input.
MSP and CACP cost of production, 2026-27
| Crop | MSP (₹/quintal) | Cost (₹/quintal) | Stated margin | Season |
|---|---|---|---|---|
| Wheat | 2,585 | 1,239 | 109% | Rabi 2026-27 |
| Gram | 5,875 | 3,699 | 59% | Rabi 2026-27 |
| Rapeseed & mustard | 6,200 | 3,210 | 93% | Rabi 2026-27 |
| Lentil (masur) | 7,000 | 3,705 | 89% | Rabi 2026-27 |
| Paddy (common) | 2,441 | 1,627 | 50% | Kharif 2026-27 |
| Maize | 2,410 | 1,544 | 56% | Kharif 2026-27 |
| Tur / arhar | 8,450 | 5,496 | 54% | Kharif 2026-27 |
| Moong | 8,780 | 5,438 | 61% | Kharif 2026-27 |
| Soybean (yellow) | 5,708 | 3,805 | 50% | Kharif 2026-27 |
| Cotton (medium staple) | 8,267 | 5,511 | 50% | Kharif 2026-27 |
What most pages get wrong
MSP is set at 1.5 times the cost
Since 2018-19 the Union Budget formula fixes MSP at at least 1.5 times the all-India weighted average cost of production. That is why the stated margins sit around 50% or more.
Published cost includes family labour
The CACP cost includes paid-out expenses plus an imputed value for family labour. Your cash profit can therefore be higher than the economic margin, and your real return to land is what is left after land rent.
MSP is a price, not a purchase order
Whether you can actually sell at MSP depends on the crop, state procurement and the window. Many crops trade at mandi rates near or below MSP.
Per-quintal costs make comparison easy
Once cost is expressed per quintal, you can compare it directly with the MSP, which is also quoted per quintal. A yield change moves both revenue and cost.
Frequently asked questions
How much income does 1 acre of wheat give at MSP?+
What is the cost of production of wheat in 2026-27?+
Does this calculator show my profit?+
Why is the margin different for different crops?+
Should I use the MSP or my local mandi price?+
Does it include the cost of family labour?+
Sources, dates and a changelog.
Every number this calculator uses is either an input you control or a value from the sources below. The formula is compiled and tested at build time, so the page cannot ship with a broken calculation.
Sources
This page
- Last verified: 29 October 2026
- Next review: 29 April 2027
- Vertical: Agriculture & Farming
- Build tests: 3 passed
- Changelog: 1 entry
How we handle errors
- Spotted a mistake? Report it — we correct and log it.
- Corrections appear in the changelog below.
- Read the methodology and the disclaimer.