Abstract: Background and Objective: Economic viability often becomes a critical parameter for agricultural management with the intention to accept or reject a proposed agricultural system. This study was carried out to conduct a comparative analysis of the economic viability of both organic and conventional rice farming. Materials and Methods: Eighty farmers from the area of Malang Regency were randomly selected for this study. The capital budgeting methods were used to analyze the economic viability of the farms. The multiple linear regression was analyzed by SPSS version 20 for determining capital budgeting factors. Results: The economic viability result showed that the organic rice farming was 5439.04 USD more profitable, 28% more reliable, 1.78 higher and 0.78 years earlier than the conventional system for net present value, Internal Rate of Return, Benefit-Cost Ratio and Payback Period, respectively. The regression result revealed that revenue and cost were significant in all capital budgeting methods on both farming systems. Conclusion: The organic rice farm had given better financial performance and economic viability than conventional rice farm. The return of investment can be enhanced fast by increasing the revenue parameter of rice farming.