Development Profit Calculator
Run a quick residual appraisal on any UK development scheme. Enter the GDV, land, build and cost assumptions to see your profit, profit on cost and profit on GDV. Free, instant, no signup.
Marketing, SDLT, legals
% of build cost
% of build cost
% of land + build
How a development appraisal works
Every appraisal starts with the GDV, what the finished scheme is worth. From that you subtract every cost of getting there:
- Land: the site purchase price
- Build cost: construction, typically the largest line
- Professional fees: architect, planning, engineers, QS (often ~12% of build)
- Contingency: a buffer for overruns (commonly ~5% of build)
- Finance: the cost of development funding over the build period
- Other: SDLT on the land, legal fees, marketing and sales
What's left is your profit. Divide it by total costs for profit on cost, or by GDV for profit on GDV. These are the two headline measures lenders and investors use to judge whether a scheme stacks up.
Development appraisal FAQs
What is GDV in property development?
GDV stands for Gross Development Value, the total value of a completed scheme once built and sold. It's the starting point of every development appraisal: profit and viable land value are both worked back from GDV.
How do you calculate development profit?
Development profit = GDV − total development costs. Total costs include the land, build cost, professional fees, a contingency, finance costs and other costs such as marketing, SDLT and legal fees. The calculator above sums these for you.
What is a good profit margin on a development?
Lenders and most developers look for around 15% to 20% profit on cost (or roughly 17% to 20% on GDV) to justify the risk. Thinner margins leave little room for build-cost overruns or a softening sales market.
What is the difference between profit on cost and profit on GDV?
Profit on cost divides profit by total development costs; profit on GDV divides profit by the completed value. Profit on cost is the more common lending benchmark, but both are quoted, so this calculator shows each.
What is a residual land valuation?
A residual valuation works backwards: take the GDV, deduct build costs, fees, finance and the developer's required profit, and what remains is the most you can pay for the land. It's how developers decide what to bid on a site.
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