Development Feasibility Calculator

Estimate a construction project's expected profit and break-even sale price.

Results

Sellable area

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Total project revenue

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Cost breakdown

Land cost —
Construction cost —
Soft costs —
Contingency —
Sales and marketing costs —
Financing cost —
Total project cost —
Project profit

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Profit on revenue

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Profit on cost

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Cost per sellable m²

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Break-even sale price per m²

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Indicative estimate. VAT, taxes and the timing of cash flows are not included. A detailed cost estimate (Form 2) is needed for bank financing.

Glossary of terms

Land cost
The purchase price of the plot, or its market value if you already own it.
Gross building area
The total area of all floors, including common areas (stairs, corridors, technical rooms).
Construction cost per m²
Direct construction cost (materials, labour, equipment) per square metre of gross area, depending on the chosen finish level (shell, white frame or green frame).
Sellable area share
The part of the gross area that is sold (apartments, commercial units). In residential projects it is usually 75–85%.
Average sale price per m²
The expected average price per square metre of sellable area.
Soft costs
Design, permits, engineering supervision and project management — as a percentage of construction cost.
Contingency
A reserve for rising material prices and unforeseen works — as a percentage of construction cost.
Sales and marketing costs
Advertising, brokerage commissions and the sales team — as a percentage of revenue.
Financing cost
Total interest and fees payable on loans during the construction period.
Sellable area
Gross area multiplied by the sellable area share.
Total project revenue
The expected income from selling all of the sellable area.
Total project cost
The sum of all costs — land, construction, soft costs, contingency, sales and financing costs.
Project profit
Total revenue minus total project cost.
Profit on revenue
Project profit as a percentage of revenue.
Profit on cost
Project profit as a percentage of total cost — one of the key indicators for investors and banks. 20% or more is generally considered a good result.
Cost per sellable m²
Total project cost divided by the sellable area.
Break-even sale price per m²
The minimum average price at which the project covers all its costs and does not make a loss.

Results are indicative and do not constitute financial advice.

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