A bio-economic model for dairy sheep was applied to the classical extensive Carpathian system (indoor winter lambing, traditional weaning, sale of surplus lambs before Easter, summer milking period with ewes on pasture) was modeled. The economic values were calculated for the Slovakian Improved Walachian multi-purpose breed. The economic values per unit increase in the traits were: 0.32 EUR/kg milk yield during the standardized milking period of 150 days, 0.29 EUR/0.1% milk fat, 0.42 EUR/0.1% milk protein, 0.28 EUR/% and 0.56 EUR/% for conception rates of female lambs and ewes, respectively, 0.20 EUR/0.01 lamb born, 0.0036 EUR/% and 0.0040 EUR/% for lamb survival at birth and until weaning, 0.65 EUR/kg birth weight, 0.032 EUR per g/d daily gain from birth until weaning, 0.030 EUR/kg mature weight, 0.38 EUR/0.1 and 0.21 EUR/0.1 conformation quality grade for weaned lambs and adult sheep, respectively, 0.42 EUR/kg fleece weight and 11.10 EUR/year of productive lifetime for ewes.