A small goat unit needs money twice: once to start (animals, shed, equipment) and then every month to run it (feed, labour, care). Below is a worked example for 10 does + 1 buck and 20 does + 1 buck, using NABARD's indicative costs for Tamil Nadu for 2026-27, with a simple way to check whether the kids you sell can cover your costs. It is an example to learn from, not a promise of profit. Your own numbers will be different.
One-time costs to start
Banks look at NABARD's "indicative unit costs" when they judge a loan. For 2026-27, NABARD's Tamil Nadu office puts a stall-fed goat unit at roughly this (NABARD, June 2026):
| What you pay for | 10 does + 1 buck | 20 does + 1 buck |
|---|---|---|
| Does (15–18 months old, near kidding) and a buck | ₹1,45,000 | ₹2,75,000 |
| Mud-floor shed for adults and kids | ₹1,04,650 | ₹1,82,455 |
| Transport, equipment, dung pit and first-year insurance (20+1 also has a chaff cutter) | ₹13,000 | ₹45,400 |
| Running costs for the first 9 months | ₹87,094 | ₹1,68,713 |
| Total (rounded) | ₹3,50,000 | ₹6,72,000 |
- NABARD prices the does in the last month of pregnancy, so the first kids arrive soon after you buy.
- A raised shed with a plastic slatted floor costs more in total: ₹4,39,000 (10+1) and ₹8,32,000 (20+1). NABARD costs such a shed at ₹600–650 per sq ft, against ₹300–350 for a mud-floor shed. A wooden slatted floor costs about 70–80% of the plastic one.
- If you already have a shed for the adult goats, the total falls to about ₹3,00,000 (10+1) and ₹5,90,000 (20+1).
Running costs every year
Kids take months to grow before you can sell them, so NABARD adds 9 months of running costs to the unit cost of a stall-fed farm. That money covers (NABARD):
- Concentrate feed (costed at ₹22 per kg), green fodder and dry fodder: the biggest part
- Vet care, electricity and small expenses
- Labour: one worker at ₹15,000 a month for every 50 adult goats, shared out by herd size
- Insurance of the animals at 4% of their cost each year
Over a full year, that works out to roughly:
| Running costs a year (stall-fed) | 10 does + 1 buck | 20 does + 1 buck |
|---|---|---|
| With hired labour | about ₹1,20,000 | about ₹2,35,000 |
| With family labour instead | about ₹85,000 | about ₹1,63,000 |
If the goats graze for part of the day, NABARD says 50–80% of the stall-fed running costs can be taken, because feed is the largest cost. After the first 9 months, banks can fund further running costs through a Kisan Credit Card.
Income: what you can sell
Kids are the main income. The old does you replace and the manure add a little more.
- Does kid about every 8 months, so some years have two kiddings and some have one. NABARD's model for 10 does sells about 10–18 kids a year once the herd is running. That already allows for 15% kid losses and for keeping 2 young does each year to replace old ones; the model also sells 2 old does a year (NABARD model, 2017).
- Breeds and farms differ. In Tamil Nadu studies, Tellicherry does had about 1.1–1.25 kids per kidding (TANUVAS study, 2017), and Kodi Adu does kidded about every 7.7 months (TANUVAS study, 2020).
- Manure from the dung pit can go on your own fields, or you can sell it. You can post a free ad for goat manure too.
What a kid sells for depends on breed, weight, season and where you sell: see How to sell goats: timing, fair price and safe payment. The box below shows asking prices in farmers' goat ads on Kattutharai.
On Kattutharai, 1 Nov 2026
Asking prices in farmers’ ads, not market prices.
Sell your goats on Kattutharai
Post a free ad with photos and a short video. Buyers near you call or chat with you directly. No commission.
Will the kids cover the costs?
Before you buy, work out the least each kid must bring in: divide your yearly running costs by the number of kids you expect to sell.
| Example: 10 does + 1 buck | Running costs a year | Per kid, 14 kids sold | Per kid, 10–18 kids sold |
|---|---|---|---|
| Stall-fed, hired labour | about ₹1,20,000 | about ₹8,600 | about ₹6,700–₹12,000 |
| Stall-fed, family labour | about ₹85,000 | about ₹6,100 | about ₹4,700–₹8,500 |
Then add the loan. For example, if you borrow ₹3,00,000 and repay it over 5 years, the principal alone is ₹60,000 a year. That is about ₹4,300 more per kid if you sell 14, plus interest. The 2 old does you sell each year bring the figure down a little.
If buyers near you pay less than your figure, change the plan before you spend: start smaller, use your own shed and labour, grow fodder, or let the goats graze.
Make your own budget
- Write down what you already have: land, a shed, water, fodder, and family members who can work.
- Get local prices for does, a buck, shed materials, feed and labour.
- Count kids honestly. NABARD's model works out to about 1–1.8 kids sold per doe a year; plan with the lower end until your own records show more.
- Add running costs month by month, including the dry months when you buy more fodder.
- Keep running costs for the first 9 months in hand or inside the loan, as NABARD does.
- Divide, compare with what buyers pay, and then decide.
What changes the numbers
- Price of the animals: breed, age and the season you buy in.
- Stall-feeding or grazing: feed is the biggest running cost.
- Who does the work: hired labour is about ₹36,000 a year for a 10+1 unit in NABARD's figures.
- The shed: a mud floor costs about half as much as a plastic slatted floor.
- Kid losses: every kid lost is income lost. See Goat kid care: colostrum, creep feed and weaning.
- When you sell: festival demand changes prices. See when to sell.
- Disease: vaccination and deworming protect the whole herd. See Goat health: vaccination schedule and deworming.
The project report your bank will ask for
Banks check that the plan is practical, that the numbers work and that you can repay (NABARD model, 2017). A project report usually has:
- About you: name, age, address, education, farming experience, any goat-rearing training, bank details.
- About the farm: breed and number of animals, village, land (own or leased) and its area, water, electricity, distance to the veterinary hospital and the market.
- Costs: one-time and running costs, with quotations.
- Money plan: your own share, the loan, and any subsidy you are applying for.
- Herd chart for 5 years: kids born, losses, kids sold, animals replaced.
- Income and spending for 5 years, with the cash flow and the repayment plan.
Typical documents are the land document or lease deed, photos of the site, PAN and Aadhaar, address proof, bank statements for the last 6 months, and a training or experience certificate (NLM model report and document list).
Going by NABARD's model scheme, expect your own share (margin money) of 10–25%, repayment over 5–7 years with a grace period at the start, interest set by the bank, and the loan paid out in stages as you build the shed and buy the animals. For farm loans up to ₹2 lakh, RBI has told banks not to ask for collateral or margin money from 1 January 2025 (RBI, 6 December 2024).
Common mistakes
- Counting kids before they are born: plan with fewer kids than the best case.
- Forgetting labour and fodder costs in the dry months.
- Buying more animals than your shed, fodder and time can handle.
- Spending everything on the shed and keeping nothing for feed.
- Borrowing more than the kids you sell can repay.
Frequently asked questions
How much money do I need to start with 10 goats?
In NABARD's 2026-27 Tamil Nadu figures, a stall-fed unit of 10 does and 1 buck comes to about ₹3,50,000, including a mud-floor shed and 9 months of running costs. It is less if you already have a shed, grow fodder or let the goats graze.
Is goat farming profitable?
It can be, but nobody can promise it. It depends on what you pay for the animals, feed, labour, kid losses and the price you get. Do the break-even check with your own numbers before you buy.
Can I start with 5 goats?
Yes. NABARD lists a 5-doe unit at about ₹1,59,000 with a mud-floor shed, using a village buck or artificial insemination. Many farmers start small and grow the herd from their own kids.
Will the bank ask for collateral?
For farm loans up to ₹2 lakh, RBI says banks should not ask for collateral or margin money. Above that, each bank decides. See Goat farming subsidy, loans and insurance in 2026.
Next
Read Goat farming subsidy, loans and insurance in 2026 for loans, insurance and schemes, and How to sell goats: timing, fair price and safe payment for getting a fair price. When your goats are ready, post a free ad or look at goats for sale.