The objective of this study was to evaluate the growth performance and feed efficiency of dairy calves fed a commercial agglomerated milk replacer (CMR) compared with a component-based milk replacer formula, mixed on farm, using high quality, individually-sourced ingredients (PDS). Both milk replacer (MR) formulas contained 24% crude protein and 24% fat on a DM basis and were devoid of feed additives or medications. A total of 64 neonate Holstein bull calves (2–3 d of age, initial body weight (BW) 38.9 ± 0.24 kg) were blocked by weight and allotted to one of 2 MR treatments. Calves on each treatment received similar milk solids and volume per day throughout the trial, were weaned on d 42 in a step-down manner by reducing milk solids and volume from d 35 to 42, and exited the facility on d 49. Calves were offered ad libitum access to a commercial starter feed (18% CP) beginning on d 5. Calf growth and starter feed intakes were monitored weekly. Growth performance, intakes, and feed efficiency data were analyzed by the PROC MIXED of SAS. Intake of daily milk solids did not differ between treatments, but PDS increased (P < 0.05) average daily starter intakes at d 42 (0.30 vs. 0.20 ± 0.03 kg) and d 49 (0.51 vs. 0.40 ± 0.03 kg); and total intakes (milk solids + starter) at d 42 (1.01 vs. 0.92 ± 0.03 kg) and d 49 (1.12 vs. 1.01 ± 0.03 kg) versus those fed CMR. Compared with CMR, calves fed PDS had improved (P < 0.05) ADG on d 28 (0.53 vs. 0.45 ± 0.02 kg), d 42 (0.62 vs. 0.52 ± 0.02 kg), and d 49 (0.65 vs. 0.57 ± 0.02 kg). The PDS-fed calves also had improved gain:feed (P < 0.05) on d 28 (0.639 vs. 0.554 ± 0.015) and d 42 (0.620 vs. 0.560 ± 0.013) compared with CMR. These improvements resulted in increased (P < 0.05) BW on d 28 (53.7 vs. 51.6 ± 0.5 kg), d 42 (65.1 vs. 60.9 ± 0.9 kg), and d 49 (70.9 vs. 67.0 ± 1.3 kg) for calves fed the PDS formula. These data indicate an on-farm, component-based MR based on individual, high quality ingredients improved performance and feed efficiency of calves compared with a commercial agglomerated MR of similar nutrient content.