The objective of this study was to develop the least-cost starter’s diet and evaluated its effect on the growth performance of Sasso breeds and Indigenous ecotype of chicks under the local condition of the South Gondar Zone. The effects of substitution of different levels of commercial starters ration with homemade diet on the growth performance of Sasso and Indigenous chicks were studied in Hiruy Abaregay village of Farta district. The research area is 586km distant from the capital city of Addis Ababa, Ethiopia. A total of 510 Sasso T-44 and 90 Indigenous local ecotypes day-old chicks were randomly divided into five groups, each with 102 and 18 chicks, respectively. These were assigned into five treatments in which 100 (T1), 75 (T2), 50 (T3), 25 (T4), and 0% (T5) of commercial starter’s diet in factorial completely randomized design (CRD) with 3 replications for 60 days feeding period. The results obtained indicated that increased levels of substitution of a commercial diet with a homemade diet significantly depressed (p<0.001) mean daily feed consumption and retention of dry matter, nitrogen, and metabolizable energy. Growth rate as measured by mean daily weight gain, mean final body weight, and total feed consumption and feed cost were significantly miserable (p<0.001) in an increased homemade diet. On the contrary, there was an increase in feed conversion ratio and fiber content in high-level dilution of starter’s commercial diet with a homemade diet. However, the groups of chicks on 0, 25, and 50% commercial starters diets replaced by homemade diet were significantly higher (p<0.001) in mean daily feed intake, daily weight gain, feed conversion ratio, and final body weight attained. The results of this study indicated that up to 50% of expensive commercial starter’s diet could economically be replaced with the least cost homemade diet without adversely affecting the growth performance of chicks.