Property Development Feasibility Calculator

How This Calculator Works

The Property Development Feasibility Calculator helps you estimate the potential profitability and risks of a real estate development project. It considers all major costs, revenue, and timing factors to give you a clear picture of your expected returns.

• Land & Acquisition: Enter the land purchase price and any stamp duty or acquisition costs. These are your initial outlays before development begins.
• Development Costs: Include construction costs, professional fees (such as architects, engineers, and consultants, as a percentage of construction), and a contingency buffer for unexpected expenses.
• Financing: Add any upfront financing fees and the annual interest rate. The calculator estimates total interest based on the sum of land and development costs over the full project period.
• Timing: Specify the expected duration for development approval, construction, and sales. These periods affect your financing costs and cash flow.
• Revenue: Enter the number of units/lots, expected sales price per unit, selling costs (as a percentage of sales), and sales tax. The calculator computes both gross and net sales revenue.

Outputs: The calculator provides a detailed breakdown of total costs, gross and net revenue, total financing costs, net profit, and profit margin. This allows you to quickly assess whether your project is financially viable.

• Total Land & Acquisition Costs: All costs to acquire the site.
• Total Development Costs: Construction, professional fees, and contingency.
• Total Financing Costs: All interest and fees paid to lenders.
• Gross & Net Sales Revenue: Projected income before and after selling costs and taxes.
• Net Profit & Profit Margin: Your expected return in dollars and as a percentage of net sales revenue.

Pro Tip: Adjust the inputs to reflect your local market, and always consult with professionals for large or complex projects. This tool is for initial feasibility and should not replace detailed financial modeling.