---
title: "Interest Options on the Closeout: Charge Interest on What You Actually Finance"
description: Optimize your feedlot's financial accuracy by choosing which costs earn interest on your closeout reports, ensuring true breakeven analysis.
---

[Feedlot Solutions blog](https://feedlotsolutions.com/blog)

# [Interest Options on the Closeout: Charge Interest on What You Actually Finance](https://feedlotsolutions.com/blog/interest-options-on-the-closeout-charge-interest-on-what-you-actually-finance)

 Written by [David Wang](https://feedlotsolutions.com/blog/author/david) | Nov 5, 2026, 6:05:53 PM

 

*3 minute read*

Most feedlots carry real borrowing costs while cattle are on feed. The cattle are paid for on arrival. Feed, yardage, processing and vet bills add up week after week. If your closeout only charges interest on feed and cattle, the yardage and processing money you borrowed never shows up. Your breakeven looks better than it really is.

**Interest Options** lets you choose which costs earn interest on your closeout reports. You can also use each owner's own financing terms instead of a single rate. The **Calculation Hint** then walks through the figure step by step, so anyone can check it.

## Where to find it

The options appear in the parameters panel of four reports: **Closeout**, **Prospective Closeout**, **Break-Even Analysis** and **Cost Analysis**. They also appear on the **Closeout Predictor** screen, beside the **Interest Rate** box.

## Choosing what earns interest

1. Enter an annual rate in **Interest Rate (%)**, for example `7.5`.
2. Tick the costs that should carry interest: 
     - **Include Interest on Cattle Purchase**: ticked by default.
     - **Include Interest on Feed**: ticked by default.
     - **Include Interest on All Expenses**: unticked by default. It covers yardage, salt, bedding, processing, transportation, medical and misc.
3. Click **Preview**.

The defaults reproduce the calculation you had before. Your existing closeouts do not change unless you tick the third box.

## How FLS calculates the interest

FLS uses each animal's actual time on feed, not a fixed term.

- **Cattle purchase** earns interest for the whole period, because cattle are paid for on day one.
- **Feed and all other expenses** earn half the period's interest. These are paid gradually, so on average the money is tied up for about half the time.

Here is an example lot of 70 head with 15,194 head days, at `7.5%`:

- Average time on feed: 15,194 ÷ 70 = 217 days, or 0.595 years.
- Interest factor: 1.075 ^ 0.595 = 1.044, which means 4.395% over the period.
- Feed: $50,683.95 × 4.395% ÷ 2 = $1,113.67.
- All other expenses: $13,325.67 × 4.395% ÷ 2 = $292.80.
- Interest Cost = $1,406.47.

Click the interest figure on the **Closeout** to open the **Calculation Hint**. It shows these same steps with your lot's own numbers. It also says which costs were left out and why.

## Using each owner's financing instead

Some lots are financed by the owner's lender, at the owner's own rate. Record this on the lot first. In **Edit Lot**, set the owner's **Financed** column to `Yes`, then enter the **Amount** and **Interest Rate**.

On the report, leave **Interest Rate (%)** blank. Then tick **Include Financed Interest**. FLS charges each financed owner's amount at that owner's rate, over the same average time on feed.

The two methods are either/or. Once you type a rate, **Include Financed Interest** greys out. Clear the rate, and the three cost boxes grey out instead. This keeps the same money from being charged twice.

## Important safeguards

- A negative rate is refused with the message "Interest Rate must be 0 or more, or left blank." **Preview** stays disabled until you fix it.
- A blank **Interest Rate (%)** is treated as zero, and the report still previews.
- With a rate entered, financed interest is ignored, even if the box was ticked earlier.
- Financed interest only counts owners marked **Financed** with both an amount and a rate.
- On **Break-Even Analysis** and **Cost Analysis**, financed interest needs a single lot selected. An all-lots analysis has no single set of owners.
- Interest is already part of **Total Expenses**, profit and breakeven. The **Interest** line shows how much of that total it is.

## Available in FLS Cloud

Interest Options is available now on desktop, on all four reports and the Closeout Predictor, at no extra cost. Your breakeven can now reflect what the lot really costs to carry. If you work out interest by hand today, run your next Closeout with **Include Interest on All Expenses** ticked. Compare it with your own figure.

**Not using FLS Cloud yet?** Feedlot Solutions provides the most comprehensive, cloud-based management software for the modern beef producer. From inventory and health records to precise feed billing and custom reporting, we help you measure it so you can manage it.

 

Not using FLS Cloud yet? Feedlot Solutions provides the most comprehensive, cloud-based management software for the modern beef producer. From inventory and health records to precise feed billing and custom reporting, we help you measure it so you can manage it.

**Click [here](https://feedlotsolutions.com/request-demo)to schedule a demo.**

 

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