Data from production and financial records from the Wakwa Centre for Animal and Veterinary Research were used to find out whether or not genetic improvement for dairy production is a profitable investment. The herd projection computer program was used to herd-project the performance of 100 Holstein x Gudali crossbred and 100 Gudali heifers over a 10-year period. Despite the high mortality rate of the crosses, their overall improvement over the local Gudali led to a benefit-cost ratio of 4.21. This suggests that genetic improvement of local cattle through crossbreeding for dairy production can be a profitable venture. Crossbred dairy farming is therefore recommended for the dairy industry in Cameroon