Development feasibility calculator
Estimate total cost, maximum senior debt, equity required, profit margin and residual land value on a development.
Estimated results
What these figures mean.
This is a first-pass feasibility, the kind run before a full quantity surveyor's report exists, to see whether a site is worth taking further. Enter the gross realisation value (GRV) — the expected total sale value of the completed project — alongside the land cost and the construction cost. Contingency and soft costs (consultants, council fees, finance costs and the like) are calculated as a percentage of the construction figure, and selling costs as a percentage of GRV; adjust the percentages to match how conservative you want the numbers to be.
Lenders cap senior debt two ways at once — as a percentage of total cost (loan-to-cost) and as a percentage of GRV (loan-to-value) — and fund to whichever cap is lower, so this calculator shows both limits and the maximum senior debt that actually applies. Equity required is the gap between total cost and that maximum senior debt. Profit and margin on cost use the land figure you entered; residual land value works the calculation the other way, showing roughly what a site could support at zero profit, before accounting for whatever margin a lender or an equity partner would require. None of this replaces a QS estimate, a sales appraisal or legal advice — construction finance is arranged through banks, private lenders, funds and specialist non-bank lenders depending on scale, presales and track record, and every facility is assessed on its own terms.
Development feasibility — questions we are asked.
What loan-to-cost and loan-to-value limits should I use?
These vary by lender, track record, presales and location. Try a few combinations — the calculator shows which limit binds so you can see where the sensitivity sits.
Does this calculator include presale requirements?
No. Presale conditions are a separate lender requirement layered on top of LTC and LVR limits, and vary widely by product and scale.
What if my soft costs are higher than a flat percentage of construction?
Use the percentage field to approximate your actual soft cost budget, or treat the output as indicative and refine it once a detailed cost plan exists.
Is residual land value the same as what I should offer for a site?
Not directly — it shows what the numbers support before a profit margin is deducted. A realistic offer needs to leave room for the profit a lender or equity partner will expect.