The experiment was conducted with 144 broiler chicks from day-old to 5 weeks of age to investigate the efficacy of a water additive in broiler production. The chicks were randomly distributed into four different treatments namely T1 (control), T2 (water additive as per recommendation level), T3 (25% less than recommendation) and T4 (25% more than recommendation). Body weight of control group was higher in 2nd week of age, but at the end of the experiment additive groups showed higher values compare to control (p<0.05). Body weight gain was increased and feed conversion ratio was improved in the additives groups during the finishing and total period, although feed intake was different among the additive groups (p<0.05). When the hematological parameters were evaluated, packed cell volume and total erythrocytes counts were increased in the additive group that received 25% more than recommendation, and hemoglobin in 25% less than recommendation group. Mean cell volume and mean cell hemoglobin of the additive groups showed lower (p<0.05) values compare to the control, but other parameters were not affected. Sales price and profit were significantly higher in the additive groups compare to the control, although total production cost was increased in the additive groups (p<0.05). All levels of water additive increased profit in comparison with the control but 25% less than recommendation level appeared to be most profitable and cost effective. It also suggests that any additive considered for poultry, must undergo trial for determining efficacy as well as its cost effectiveness for application.