Description
Compute simple financing cost=quantity*price*rate*days/yearDays; add quantity*storageCost for total carry and report per-unit break-even price.
Farm economic comparisons depend on fixed/variable costs, opportunity-cost assumptions, depreciation, discount periods and explicit payment limits. A partial margin or finite-difference response differs from total profitability or an optimization-derived shadow price. Supplied rates and tax flags do not determine actual obligations.
Compute simple financing cost=quantity*price*rate*days/yearDays; add quantity*storageCost for total carry and report per-unit break-even price.
When to use this tool
Use Crop Storage Interest Carry Term when checking the stated caller-defined cost, margin, cap, valuation or sensitivity term.
How to use the tool and how it works
- Enter quantity, purchasePrice, annualRate, storageDays, yearDays, storageCostPerUnit. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read financingCost, totalCarry, breakEvenSalePrice. Use the output convention below.
Require nonnegative quantity, purchase price, annual fractional rate, storage days and per-unit storage cost, with yearDays>0. Compute simple financing cost=quantity*price*rate*days/yearDays; add quantity*storageCost for total carry and report per-unit break-even price.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| quantity | Quantity | Required. Finite number; minimum 0. |
| purchasePrice | Purchase Price | Required. Finite number; minimum 0. |
| annualRate | Fractional simple annual rate, not a percentage number. | Required. Finite number; minimum 0. |
| storageDays | Storage Days | Required. Finite number; minimum 0. |
| yearDays | Year Days | Required. Finite number; strictly above 0. |
| storageCostPerUnit | Per-unit cost for the entire supplied holding period, not per-unit per-day cost. | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| financingCost | Financing Cost | Required. Finite number. |
| totalCarry | Total Carry | Required. Finite number. |
| breakEvenSalePrice | Break Even Sale Price | Required. Finite number. |
{
"input": {
"quantity": 100,
"purchasePrice": 20,
"annualRate": 0.1,
"storageDays": 180,
"yearDays": 360,
"storageCostPerUnit": 2
},
"output": {
"financingCost": 100,
"totalCarry": 300,
"breakEvenSalePrice": 23
}
}Limitations and assumptions
- Storage cost is per unit for the stated holding period, not per day; no compounding, spoilage, taxes or sale fees are added.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a complete verified budget and suitable economic analysis; consult qualified financial/legal professionals for actual investment, contract or tax decisions.
References
Similar or alternative tools
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