Property Development Feasibility Calculator
Does the site stack up? Work through purchase, build costs, finance and your exit strategy to see your estimated project cost, profit and margin — then stress-test it against higher build costs and softer end values.
How development feasibility works
A feasibility study answers one question: does the finished value exceed everything it costs to get there, by enough to justify the risk? The arithmetic is simple; the difficulty is in the assumptions.
Total project cost is the land and acquisition costs, plus construction, plus the long tail of professional fees, council contributions and utility connections, plus the finance costs of carrying it all. Gross Realisation Value (GRV) is what the finished dwellings sell for. Profit is what remains after selling costs.
The numbers developers watch
- Margin on cost — profit divided by total project cost. Around 20% is a common benchmark, because it leaves room for a build overrun or a softer market.
- Return on equity — profit against the cash you actually put in, which is what your money really earned.
- Break-even sale price — the point at which the project makes nothing. The gap between this and your expected price is your buffer.
Where feasibilities go wrong
Three things account for most disappointing developments: construction costs coming in above budget, the end value being optimistic, and the project taking longer than planned so holding costs mount. That is exactly why this calculator includes a sensitivity analysis — if a 5% shift in end value wipes out your margin, the project is fragile regardless of what the base case says.
Working out what you can borrow first? Try the Borrowing Capacity Calculator. Planning to hold the finished dwellings? The Cash Flow Calculator models the ongoing position.
Important information. These calculators provide estimates for general information and educational purposes only. Results are based on the information and assumptions entered and may not reflect your actual financial position or eligibility. They do not constitute financial, credit, taxation, investment or legal advice. Lending criteria, interest rates, taxes, government charges, stamp duty rates and concessions can change. You should obtain advice appropriate to your circumstances from appropriately qualified professionals.
Development feasibility: this calculator provides general estimates only. Development feasibility can be materially affected by planning controls, construction costs, lending conditions, taxation, council requirements, market movements and property-specific factors. Figures should not be relied upon as financial, legal, taxation, lending, town-planning or investment advice. Independent professional advice should be obtained before making a property or development decision.