The removal of corn oil from dried distillers grains using solvent extraction allows a higher level of inclusion for solvent-extracted dried distillers grains with solubles (SDG) in rations and reduces the risk of milk fat depression in lactating Holstein dairy cows. The objective of this study was to evaluate the impact of substituting 70% of the canola meal (CM) with SDG on milk production and total mixed ration costs. A total of 1408 Holstein cows averaging 91 ± 49 days in milk were randomly enrolled to one of four dietary treatment groups: (1) primiparous control cows (PC) fed 13% CM and 0.21% urea; (2) primiparous SDG cows (PSDG) fed 4.2% CM, 8.8% SDG and 0.42% urea; (3) multiparous control cows (MC) with 13% CM and 0.21% urea; and (4) multiparous SDG cows (MSDG) with 4.1% CM, 8.6% SDG and 0.42% urea. The total mixed rations were formulated to be isonitrogenous. For the income over the feed costs from a control herd, the fed PC and MC's total mixed rations and the fed PSDG and MSDG's total mixed rations were compared. The milk yield, energy-corrected milk, milk fat yield, milk protein yield and milk protein % were lower in the PC cows compared to the PSDG cows. The MSDG cows scored lower in terms of the milk yield, milk protein yield and milk protein % and higher for the 3.5%-fat-corrected milk, milk fat yield and milk fat % compared to the MC cows. The total income, cost of dry matter and income over feed costs per cow/d were higher in the control vs. SDG simulated dairy herds. The control herd had a higher income over feed costs than the SDG herd because the average milk yield per cow/d was higher even though the SDG herd had a lower total mixed ration cost and higher milk fat production.