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Economic value of sexed semen due to increased intensity of selection on cows to produce replacements can be determined from a slight modification of a procedure used to predict net worth of semen of different costs from sires of different transmitting abilities. Table values corresponding to precision of sexing (selection intensity allowed for cows), discount rate, investment period, and conception rate are used in simple equations to determine the economic value of sexed or regular semen. The additional price that can be paid for sexed semen as compared to regular semen also can be determined. For example, sexed semen resulting in 80% heifers can increase transmitting ability of cows selected to produce heifers by 93 kg of milk or genetic gain by 8 kg per year. However, with a discount rate of 10%, 10 yr, a conception rate of 50% for both regular and sexed semen, an added value above feed costs of $.1005/kg, and an ampule cost of $6 for regular semen, the cost per ampule of sexed semen must be less than $15.67 for use of sexed semen to be profitable. Another example also is given in the text for comparing the expected economic returns for two bulls with different predicted difference milk, conception rates, and price per breeding unit of regular semen.