Cotton production increase and production area movement created the need for cotton gins. Bankers as well as prospective ginners need to know the costs of owning and operating a gin. A computer spreadsheet was developed for this analysis and used in a case study. The case study gin cost $2,037,000 to build. Annual fixed costs of the gin are $229,366. Variable costs per bale are $22.20. The establishment costs were financed with two loans with annual payments of $237,346. Thus, cashflow costs are higher than total costs. The gin required 6,162 bales to cover all economic costs while 6,893 bales are needed to cashflow.