TDR Value Calculator

Work out tdr value instantly with clear inputs, formula shown and shareable results.

About TDR Value Calculator

Transferable development rights let unused development potential from one plot be used on another. The area is multiplied by a factor reflecting the ratio of land values between the generating and receiving zones, then valued at the receiving zone rate. TDR trades at a discount to notional value because it is illiquid and its use is restricted by zone and road width rules.

Formula

TDR value

Value = TDR area x multiplier factor x receiving zone land rate x (1 - market discount)

Worked example

With the default values below, TDR Value Calculator returns Realisable TDR value of $42,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

TDR area generatedminimum 0.1 m²: 1,000 m²
Land rate in the receiving zoneminimum 0 per m²: 40,000 per m²
TDR multiplier factorminimum 0.1: 1.5
Market discount on TDRaccepts 0–70 %: 30 %

Results

Realisable TDR value: $42,000,000.00
Usable TDR area: 1,500.0 m²
Gross value before discount: $60,000,000.00
Market discount applied: $18,000,000.00

Step by step

1Values used
2TDR value
3Realisable TDR value= 42,000,000.00
4Usable TDR area= 1,500.0 m²
5Gross value before discount= 60,000,000.00
6Market discount applied= 18,000,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Preliminary estimate only. TDR generation, multiplier factors and permitted use vary by jurisdiction and must be confirmed with the planning authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Preliminary estimate only. TDR generation, multiplier factors and permitted use vary by jurisdiction and must be confirmed with the planning authority.

Frequently Asked Questions

How is the TDR Value figure worked out?

Value = TDR area x multiplier factor x receiving zone land rate x (1 - market discount). Transferable development rights let unused development potential from one plot be used on another.

Why does TDR trade below its notional value?

Buyers are few, the receiving zones are restricted, and consumption depends on plot-specific rules such as road width. That illiquidity is priced in as a discount of twenty to forty percent.

What values do I need to enter?

This calculator takes 4 inputs: TDR area generated, Land rate in the receiving zone, TDR multiplier factor, Market discount on TDR. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.