The aim of the methodology is to provide users a detailed guide to the calculation of economic indicators in dairy cattle breeding in relation to accounting, to point out the average economic results of Czech and foreign dairy farms over a period of several years to enable comparison of their own results and the search for reserves, and to describe the influence of the most important factors affecting profitability and their impact on the management of the farm. Economic results varied depending on the breed, average annual milk yield and farming area. The results show, for example, that for farms breeding Czech Fleckvieh cattle and Holstein cows at an average price of 9.5 and 9.3 CZK per litre of milk, an increase in the annual milk yield of cows by 1 000 litres per cow per year would result in a higher profit without subsidies of 4800 and 4900 CZK per cow per year. The new in methodology was value of calf and manure production as a percentage of the total cost, ensuring applicability over a longer period of time. The methodology also defines tools for measuring economic efficiency in a dairy cattle farms and sets their recommended value in the conditions of Czech agriculture. For example, the IOFC indicator, which, unlike the profit, is not distorted by the level of fixed costs and the subsidies, is already used in many farms in the Czech Republic. The methodology defines recommended limits of IOFC in the conditions of Czech agriculture.