Development Feasibility Calculator
Estimate a construction project's expected profit and break-even sale price.
Results
Sellable area
Gross area multiplied by the sellable area share. —
Total project revenue
The expected income from selling all of the sellable area. —
Cost breakdown
| Land cost The purchase price of the plot, or its market value if you already own it. | — |
|---|---|
| Construction cost Direct construction cost (materials, labour, equipment) per square metre of gross area, depending on the chosen finish level (shell, white frame or green frame). | — |
| 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. | — |
| 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. —
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.