Canopy Profit Rate (CPR)
The cannabis industry's most accurate financial metric for measuring true cultivation profitability—not just revenue, but actual profit per square foot of canopy.
What is Canopy Profit Rate?
Canopy Profit Rate (CPR) measures the profit generated per square foot of flowering canopy over time. Unlike simple cost-per-pound calculations, CPR accounts for the full economic picture: facility utilization, operational efficiency, and true profitability.
Expressed as $/sq ft/day for standardized comparison across facilities
Why CPR Matters
Traditional cannabis metrics like "cost per pound" fail to capture the complete financial picture. They ignore:
- Facility utilization: A half-empty facility with low cost-per-pound is still losing money
- Time value: A 10-week strain vs. 8-week strain affects annual profit potential
- Quality distribution: Cost-per-pound doesn't distinguish A-bud from trim
- Fixed cost absorption: How efficiently are your overhead costs being utilized?
A-Bud Costing Methodology
CPR uses A-Bud Costing—a methodology that allocates costs based on the value each product tier generates, not just weight. This reflects economic reality:
| Product Tier | Typical Weight % | Revenue Contribution | Cost Allocation |
|---|---|---|---|
| A-Bud (Premium Flower) | 55-65% | ~75% of revenue | Proportional to value |
| B-Bud (Smalls) | 15-20% | ~15% of revenue | Proportional to value |
| Trim/Extraction Material | 15-25% | ~10% of revenue | Proportional to value |
The $564/lb Benchmark
Our optimized cost model targets $564/lb all-in production cost, achieved through:
- $1.82/sq ft/day OpEx baseline at scale
- Full canopy utilization (95%+ flowering space active)
- Optimized environmental controls reducing waste
- Labor efficiency through batch scheduling optimization
- Quality-tier cost allocation for accurate P&L
CPR vs. Traditional Metrics
| Metric | What It Measures | Limitation |
|---|---|---|
| Cost Per Pound | Production cost per unit weight | Ignores utilization, time, quality tiers |
| Yield Per Plant | Grams harvested per plant | Varies by strain, grow style; not financial |
| Revenue Per Sq Ft | Top-line per canopy area | Ignores costs; revenue ≠ profit |
| Canopy Profit Rate | True profit per sq ft per day | Complete financial picture |
How Canna Data Science Calculates CPR
Our platform automates CPR calculation by integrating:
- Batch tracking: Harvest weights, quality grades, timeline data
- Financial integration: OpEx, CapEx, labor from QuickBooks or manual entry
- Facility mapping: Canopy square footage by room/zone
- Market data: Revenue by product tier and sales channel
The AI Data Scientist then analyzes trends, identifies optimization opportunities, and projects the financial impact of operational changes.
Start Tracking Your CPR Today
See your true cultivation profitability with a free 30-day trial. No credit card required.
Start Free Trial