Property Development Feasibility Calculator

The current market value of the land if sold today (before development). Shows if development adds more value than just holding/selling the land. Also used for LTV calculations by lenders.

The total value of ALL lots created by the development, including ones you keep. Example: If creating 2 lots worth $3.7M each, GRV = $7.4M (even if you only sell one). Shows total wealth creation, not just cash from sales.

Typical range: 2–50 lots for small–medium developments.

Total number of lots or dwellings in your development project.

Number of lots you'll actually sell. If keeping some lots (e.g., for rental), enter only the lots you'll sell. Cannot exceed total project lots.

Tip: Use conservative estimates.

Your estimated selling price for each lot/dwelling, based on comparable sales and market conditions.

Total revenue from selling lots = Units for Sale × Average Sale Price. This is the cash that pays the bank and covers costs. All costs and profit are deducted from Gross Sales to determine Residual Land Value.

Typical range: $1,500–$3,500 per m² depending on quality and location.

All hard costs to complete the development: materials, labor, site works, etc.

Industry standard: 6–12% of construction cost.

Architect, structural engineer, civil engineer, project manager, and other consultants.

Typical range: 5–10% of construction cost.

Reserve fund for cost overruns, variations, and unforeseen issues. Higher contingency if project is complex or you have less certainty.

Typical range: 3–5% of Gross Sales.

Real estate agent commissions, marketing materials, advertising, staging, etc.

Typical: $20,000–$100,000+ depending on complexity.

Legal/conveyancing fees, council application fees, and other costs that may attract GST. Excludes stamp duty (use Stamp duty below).

Varies by state and land value.

Duty payable on the land purchase. Not included in GST credit calculations.

The actual construction amount you need to borrow (before interest and fees). The calculator determines the total facility size needed to cover this plus interest and establishment fees.

Typical range: 8–15% p.a. for private development finance.

Private lender interest rate per annum. Higher rates significantly increase finance costs.

Typical: 6–18 months depending on project size.

How long construction will take from start to completion. Longer builds = more interest costs.

Total duration of the facility including construction and sales period. Must be ≥ construction period. Longer terms = higher interest costs but more time to sell.

The total loan amount needed, calculated using a gross-up formula to cover: Net construction funds, Interest reserve (capitalised monthly), and 3% facility fees.

Interest calculated on 55% average utilization during construction, then 100% during the tail period. Interest is capitalised monthly (added to principal), so you pay interest on interest.

An upfront fee typically charged by private lenders, calculated as a percentage of the total facility limit. While this calculator uses a 3% benchmark as a standard guide for private funding, actual fees can vary (typically ranging from 1.5% to 4%) depending on the specific funder, project risk, and loan structure. This fee is built into the facility calculation (grossed up), ensuring the lender receives their fee while still providing sufficient funds for construction.

Typical range: 15–25%. Most lenders require minimum 15% margin for finance approval.

The profit margin you want to achieve as a percentage of total sales (Gross Sales). Higher margin = lower RLV (less you can pay for land).

The maximum amount you should pay for the land to achieve your target profit. Formula: Gross Sales − All Costs − Developer Profit = RLV. If RLV < Current Land Value, the project is unfeasible (better to sell land as-is). If RLV is negative, it shows cash shortfall required.

Total value creation = GRV − (Land Value + Construction Cost). Shows the total wealth created by the development project, including lots you keep.

Return on your land investment = Development Profit ÷ Starting Land Value × 100%. Shows how much return you're getting on your land equity.

Typical: Private lenders may go up to 70–80% LVR on as-completed value.

Loan to Value Ratio calculated against the total GRV (as-completed value). Lenders assess risk based on completed project value.

Shows what percentage of total project cost (land + construction) is being financed. Lenders may finance 80–100% of construction costs, but total LTC depends on land equity.

Use the "Inputs are GST Inclusive" toggle in the inputs section. When on, the tool deducts GST on sales and credits GST on taxable costs (construction, professional fees, contingency, sales & marketing, other costs excluding stamp duty) in the Net Settlement. When off, all figures are net of GST. This GST treatment is simplified and for guidance only; it does not replace advice from your accountant or tax adviser.

Development profits are generally treated as ordinary income. You should consult an accountant to understand the tax impact based on your specific entity structure (Company, Trust, or Individual).

Holding costs for land can increase significantly during the construction period and are not explicitly modeled here.