The optimum dose of fertilizers for crops varies with soil, agro-ecology, and crop management practices. Optimizing application dose is critical to reduce nutrient loss to the environment and increase nitrogen use efficiency (NUE), crop yields, and economic return to farmers. An experiment was conducted to determine the optimum N dose for increasing maize (Zea mays L. cv, Manakamana-3) yield, NUE, and farm profits under rainfed conditions. Five levels of N (0, 60, 120, 180, and 240 kg ha−1), and a non-fertilized treatment were tested in a randomized complete block design with three replications. Effects of each treatment on yield and yield attributing traits, plant lodging and Sterility (plants with no cob or grain formation), NUE, and stay green trait of maize were recorded. Application of N above 120 kg ha−1 (N120) did not have any significant effects on yield and yield components. Nitrogen, at N120 and above, produced highly fertile plants (though sterility slightly increased at N180 and N240), higher N uptake, and lower dead leaf area (18–27%). N120 produced the highest agronomic; yield increase per unit of N application (AEN—26.89 kg grain kg−1 N) and physiological efficiency of N (PEN—42.67 kg grain kg−1 N uptake), and net benefit (USD 500.43). Considering agronomic, economic, and NUE factors, an N dose of 120 kg ha−1 was found optimum for the cultivation of rainfed maize (Manakamana-3) under sandy loam soil.