Commercial Cannabis Profit Calculator
Estimate your harvest yield, operational costs, and net revenue.
How to Calculate Weed Cultivation Profit
Calculating the profitability of a cannabis grow operation involves balancing biological variables with financial overheads. To get an accurate estimate, you must look beyond just the number of plants and consider the efficiency of your setup.
Key Metrics in Cannabis Finance
- Yield per Plant: This varies wildly based on strain genetics, light intensity (PAR), and growing medium. Indoor plants typically yield between 150g to 500g, while outdoor plants can exceed 1000g in optimal conditions.
- Production Cost: This includes consumables like nutrients, CO2, water, and growing media, alongside fixed costs like electricity for HPS or LED lighting systems.
- Wholesale vs. Retail Price: Your profit margin depends heavily on whether you are selling bulk flower to dispensaries or selling directly to consumers in legal markets.
Real-World Example Calculation
Imagine you have a small boutique setup with 12 plants. If each plant yields 250 grams, your total harvest is 3,000 grams. Selling at a conservative $7 per gram generates $21,000 in gross revenue. If your total costs (seeds, nutrients, electricity, and rent) total $4,500, your net profit is $16,500 with a massive ROI of 366%.
Optimizing for Maximum Profit
To increase margins, commercial growers focus on "Grams per Watt" efficiency. Switching from traditional HPS bulbs to high-efficiency LED arrays can reduce electricity costs by up to 40% while maintaining yield. Additionally, implementing automated fertigation systems reduces labor costs, which is often the highest variable expense in large-scale operations.