Development finance calculator
Test whether a scheme stacks up before you approach a lender. Enter the site cost, build cost and end value to see the facility, loan to cost, loan to GDV, the cash you need to put in and the profit left after finance.
Result
- Total project cost before finance
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- Loan facility
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- Loan to cost
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- Loan to GDV
- –
- Your own money needed
- –
- Estimated interest
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- Arrangement fee
- –
- Total finance cost
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- Profit after finance
- –
- Profit on cost
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- Profit on GDV
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How this is worked out. The site loan is drawn on day one. Build funding is drawn in even stages, so on average half of it is outstanding over the project. Interest is simple and rolled up. Lenders set their own limits on loan to cost and loan to GDV, charge monitoring surveyor and legal fees, and some charge an exit fee. Sales costs and tax are not included.
Want real figures for your deal?
Send us the details and a broker will come back with terms from lenders whose criteria fit, including every fee.
- Your figures from the calculator are included
- Costs set out before you commit
- No obligation to proceed
More about development finance
Or call 07564 127446.
About this calculator
What is the difference between loan to cost and loan to GDV?
Loan to cost compares the loan with what the project costs to deliver: the site, the build and the fees. Loan to GDV compares the loan with what the finished scheme is expected to be worth. Lenders look at both, and the lower of the two limits usually sets the size of the facility.
Why is interest lower than the rate times the whole loan?
Build funding is released in stages as work is completed, so you only pay interest on what has been drawn. The calculator assumes even stages, which means about half the build loan is outstanding on average. A real drawdown schedule will differ.
What profit margin do lenders expect?
Lenders want to see enough margin to absorb cost overruns and a softer sales market. They assess profit on cost and profit on GDV alongside your experience and the strength of the exit. The acceptable level varies by lender and scheme.
Is the result a quote?
No. It is an appraisal aid based on your own figures. A lender will instruct a valuation and a monitoring surveyor and will set terms on the scheme, the planning position and your track record.
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