Work out development profit instantly with clear inputs, formula shown and shareable results.
Development appraisal starts from gross development value, the expected sale or investment value of the finished scheme, and deducts land, construction and a percentage for professional fees, finance and marketing. Profit is quoted both on cost and on gross development value, and lenders usually want at least twenty percent on cost.
Development profit
Profit = GDV - (land + construction + other costs)
Profit measures
Profit on cost = profit / total cost; profit on GDV = profit / GDV
Profit = GDV - (land + construction + other costs). Development appraisal starts from gross development value, the expected sale or investment value of the finished scheme, and deducts land, construction and a percentage for professional fees, finance and marketing.
Profit on cost measures the return on money deployed and is what lenders test. Profit on GDV measures the margin for error in the sales assumption, which is the risk the developer actually carries.
This calculator takes 4 inputs: Gross development value, Land cost, Construction cost, Fees, finance and marketing. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.