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Tools

Development feasibility calculator

A simple development feasibility: revenue, costs and finance, the resulting profit and margin, residual land value, and how the margin moves if revenue or construction cost changes.

Revenue

$
$
% of GRV

Costs

$
$
$
% of build
% of build
$

Finance, from your offer

% p.a.
months
%
%
%

Estimate only. Not a quote, offer or advice.

Enter the gross realisation value, land cost and construction cost.

Assumptions
  • Finance cost is approximated as debt × average drawn share × rate × time. A lender's model will be month by month.
  • GST is entered by you because the margin scheme and other GST treatment depend on your facts. Get tax advice.
  • Holding costs, land tax and leasing incentives are not included unless you add them to other costs.
How this is calculated
  1. Net revenue = GRV − GST − selling costs.
  2. Development cost = land + acquisition + construction + professional fees + contingency + other costs.
  3. Profit = net revenue − development cost − finance cost.
  4. Margin on cost = profit ÷ total cost. Residual land value solves for the land price that achieves your target margin.
  5. The sensitivity table re-runs the model with revenue and construction cost moved by each step.
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Free. No obligation. Not an application for credit.

General information only. Privet is not a lender, credit provider or mortgage broker and does not provide financial, credit, legal or tax advice.

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