I’ve been thinking about backyard chickens lately. Not because I particularly want to become a chicken farmer, but because the idea of having a few hens in the backyard sounds surprisingly appealing. Eggs are so expensive.
Fresh eggs every morning. Kids learning where their food comes from. And, of course, the possibility of saving money on groceries.
But there’s one question I really wanted to answer:
Are backyard chickens actually cheaper than buying eggs at the grocery store?
For this analysis, I’m assuming grocery store eggs cost $0.33 per egg.
I just bought 60 eggs today at Costco for around $20.
I’m also going to assume a flock of four hens, which gives backyard chickens the best chance of making financial sense because Vancouver allows a maximum of four hens. It’s also free to get a permit for backyard hens. If we’re going to go through the trouble of keeping chickens, we might as well see what the economics look like with the maximum flock.
And after running the numbers, I have to admit that the answer isn’t quite what I expected.
How Much Do Backyard Chickens Cost?
The first thing to understand is that chickens aren’t free.
There’s an upfront cost to getting started, followed by ongoing costs for feed, bedding, supplements, maintenance and potentially veterinary care.
The biggest initial expense is usually the chicken coop and run.
A basic backyard chicken setup could include:
- Chicken coop
- Enclosed outdoor run
- Feeders
- Waterers
- Nesting boxes
- Bedding
- Predator-proof fencing
- Four young hens
Depending on how much you DIY, the startup cost could vary significantly.
For this analysis, I’ll use approximately $1,500 as a reasonable starting cost.
You could spend less by building your own coop, or considerably more on a fancy pre-built setup.
And that’s something worth keeping in mind: chickens can easily become one of those hobbies where you start with a simple coop and suddenly you’re looking at designer chicken houses.
How Many Eggs Will Four Chickens Produce?
This is where the numbers to get interesting.
A productive laying hen can produce roughly 250–300 eggs per year, although production varies based on breed, age, season, diet and other factors.
I’ll use a relatively optimistic assumption of:
275 eggs per hen per year
With four hens:
4 × 275 = 1,100 eggs per year
That’s approximately:
- 92 eggs per month
- 21 eggs per week
For a family of four, that’s actually a pretty useful supply of eggs.
At that production level, you’d rarely need to buy eggs at the grocery store and could spare to give away some to friends and family.
But how much money would those eggs actually save us?
What If Grocery Store Eggs Cost $0.33 Each?
This is the number I’m particularly interested in.
At $0.33 per egg, buying 1,100 eggs from the grocery store would cost:
1,100 × $0.33 = $363
So our four backyard chickens could theoretically replace approximately:
$363 of grocery store eggs per year.
That sounds pretty good.
But now we need to figure out what it costs to produce those eggs ourselves.
How Much Does It Cost to Feed Four Chickens?
Feed is going to be the biggest ongoing expense.
A laying hen eats roughly 100–120 grams of feed per day, although actual consumption varies.
For four hens, that can add up to a significant amount of feed over the course of a year.
I’m going to estimate approximately:
$300 per year for feed
This could be higher or lower depending on:
- Feed prices
- Brand
- Organic vs. conventional feed
- How much supplemental food they receive
- How much time the chickens spend free-ranging
And while chickens will happily eat many appropriate food scraps, I wouldn’t build the financial calculation around the assumption that they’ll somehow feed themselves.
They still need a balanced layer feed.
Other Annual Chicken Expenses
Feed isn’t the only ongoing expense.
Here’s a reasonable estimate:
| Expense | Estimated Annual Cost |
|---|---|
| Chicken feed | $300 |
| Bedding | $50 |
| Oyster shell & grit | $30 |
| Coop maintenance | $40 |
| Veterinary/health allowance | $50 |
| Total | $470 |
So we’re looking at approximately:
$470 per year in ongoing costs.
And remember, this doesn’t include our initial $1,500 coop and setup.
Also, if your chicken is found wandering the neighbourhood (before it’s eaten alive by a predator), the City of Vancouver will fine you $250.
What’s the Cost Per Egg?
Now comes the fun part.
Four hens produce approximately:
1,100 eggs per year
Our estimated annual operating costs are:
$470
Therefore:
$470 ÷ 1,100 = $0.43 per egg
So our backyard eggs cost approximately:
$0.43 each
That’s compared with our grocery store price of:
$0.33 each
Right away, the grocery store is cheaper.
We’re paying approximately 10 cents more per egg to produce our own.
But What About the Coop?
We can’t ignore the cost of setting everything up.
Let’s assume we spend:
$1,500
on the coop, run and initial equipment. My husband is not particularly handy nor am I so I don’t think we would be able to build our own chicken coop reliably.
Obviously, the coop isn’t an annual expense. If it lasts 15 years, we could spread that cost over its useful life.
$1,500 ÷ 15 years = $100 per year
Now our annual chicken cost becomes:
$470 + $100 = $570
And our cost per egg becomes:
$570 ÷ 1,100 = $0.52
So once we include the annualized cost of the coop:
Backyard eggs cost approximately $0.52 each.
Compared with:
$0.33 per egg at the grocery store.
That’s quite a significant difference.
Backyard Chickens vs. Grocery Store Eggs
Here’s the comparison:
| Grocery Store | Backyard Chickens | |
|---|---|---|
| Cost per egg | $0.33 | $0.43 |
| Including coop | $0.33 | $0.52 |
| Annual eggs | 1,100 | 1,100 |
| Annual cost | $363 | $470 |
| Including coop | $363 | $570 |
Based strictly on the numbers, buying eggs is cheaper.
And that’s before we put a value on our time.
What About the Time Involved?
This is one of the biggest issues that doesn’t show up in the spreadsheet.
Chickens need care every day. Just like a pet. My daughter wants a dog but we are already so time-strapped right now.
You need to:
- Feed them
- Give them fresh water
- Collect eggs
- Clean the coop
- Replace bedding
- Check for illness
- Protect them from predators
And you can’t exactly decide to take a two-week vacation without making arrangements for someone to look after them.
Even if the daily chores only take 10–15 minutes, that’s still a significant time commitment over an entire year.
If you’re someone who enjoys being outside, taking care of animals, this may not feel like work at all.
But if your only motivation is saving money, it’s worth considering what your time is worth.
What Happens When Chickens Get Older?
There’s another important factor.
Hens don’t necessarily produce 275 eggs every year of their lives.
Young hens can be very productive, but egg production generally declines as they age.
They also tend to lay fewer eggs during the winter.
That means our assumption of 1,100 eggs every year is actually fairly optimistic.
If production drops to, say, 900 eggs per year while our expenses remain relatively similar, the cost per egg increases substantially.
At $470 in annual operating expenses:
$470 ÷ 900 = $0.52 per egg
And that’s before including the coop.
This is why backyard chickens aren’t necessarily a great financial investment.
But Fresh Eggs Are Different
Here’s where the financial calculation doesn’t tell the whole story.
A backyard egg isn’t necessarily equivalent to the cheapest egg at the supermarket.
With your own chickens, you know:
- What they’re eating
- How they’re being treated
- Where the eggs came from
- How fresh the eggs are
For some people, that has real value.
If you would otherwise buy organic, free-range or specialty eggs that cost considerably more than $0.33 each, the comparison changes.
For example, if your alternative eggs cost $0.60 each, suddenly producing eggs at $0.43–$0.52 each looks much more reasonable.
Chickens Can Be Great for Kids
This may actually be one of the strongest arguments for backyard chickens in a family.
Kids can learn about:
- Caring for animals
- Responsibility
- Where food comes from
- Biology
- Gardening
- Food production
There’s something pretty neat about collecting eggs from your own backyard and then eating them for breakfast.
That’s an experience you can’t get from a carton of eggs at Costco.
Whether that’s worth $100 or $200 a year in additional expenses is obviously a personal decision.
What If You Build the Coop Yourself?
This is where the economics could improve significantly.
If you’re handy and can build a safe, predator-proof coop and run using inexpensive or recycled materials, your initial investment could be much lower than $1,500.
You could also potentially find used equipment.
However, I wouldn’t recommend cutting corners on predator protection. The last thing I want to see and have to clean up is mauled chickens in the coop.
A cheap coop isn’t a bargain if a raccoon can get inside.
The chickens need to be safe, secure and protected from Vancouver’s weather.
For backyard chickens to beat $0.33 grocery store eggs strictly on cost, you’d need to bring your production cost below $0.33 per egg.
When Would Backyard Chickens Actually Save Money?
That’s difficult with our assumptions.
You’d need some combination of:
- Very inexpensive feed
- Excellent egg production
- A low-cost DIY coop
- Minimal veterinary expenses
- Long coop lifespan
- Minimal waste
- Very healthy hens
And even then, the savings would likely be relatively small.
If grocery store eggs were $0.60 or $0.75 each, the calculation would look very different.
At $0.33 per egg, however, the grocery store has a pretty significant advantage.
So, Is It Worth Getting Backyard Chickens in Vancouver?
Financially? Probably not.
If our only goal is to buy eggs as cheaply as possible, buying $0.33 eggs at the grocery store wins.
Our estimated backyard egg cost is approximately:
$0.43 per egg before the coop
or
$0.52 per egg including the annualized coop cost.
That’s considerably more than $0.33.
Genymoney.ca Verdict
I was initially very keen on getting backyard chickens, but with the calculations and how much more expensive it is compared to buying eggs from the grocery store, it changes my desire for getting backyard hens.
If we were serious on getting a pet, I would probably get these chickens before getting a dog.
If you want chickens because you:
- Love animals
- Enjoy gardening
- Want fresh eggs
- Want to teach your children about food
- Like the idea of greater self-sufficiency
- Enjoy having a backyard hobby
then yes, backyard chickens could absolutely be worth it.
You just shouldn’t convince yourself that you’re doing it to save money.
One of the things I love about personal finance is that the cheapest option isn’t always the option we choose.
Sometimes we knowingly spend more because we get something else in return.
Backyard chickens are a perfect example.
At $0.33 per egg, the grocery store is hard to beat. Even with four productive hens, our estimated cost of producing eggs is around $0.43 per egg before the coop, and approximately $0.52 per egg when the coop is factored in.
So if your goal is simply to reduce your grocery bill, I’d stick with buying eggs.
But if you want a backyard hobby, fresh eggs, and an educational experience for your kids, the additional cost might be money well spent.
For me, that’s probably the better way to think about backyard chickens:
They’re not a grocery-saving strategy. They’re a lifestyle choice that happens to produce breakfast.
Do you have backyard hens? What is your experience?
GYM is a 40 something millennial writing about personal finance since 2009 and interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for a free dividend yield spreadsheet and the free Young Money Bootcamp PDF.