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Development Finance Calculator

Land Cost or Residual Value:

If the development property is to be purchased then please enter the purchase price. If already owned then please enter the residual value. This figure will be used for various calculations including project cost and profitability.

Total Cost of Build:

Please enter the total cost of the build. In addition to build costs this should also include all other project costs, but not land and finance related costs.

Gross Development Value (GDV):

The Gross Development Value (or GDV) is the amount that the project will be worth or expected to sell for once it has been finished.

Loan Term: (Months)

Please enter the loan term required in months. Maximum term is 48 months. If a longer term is required then please call us.

Interest calculated per:

Interest is charged either as an annual or monthly rate. Please select which. Default is set at ‘per annum’.

Interest Rate: (%)

Please enter the interest rate that you would like the development finance calculator to use. Default is set at 7%

Facility Fee: (%)

The facility fee is calculated a as percentage of the total loan facility. This is typically between 1 and 2%. By default it is set at 2% but can be changed.

Exit Fee: (%)

The exit fee is calculated and added to the loan facility when it is redeemed. Exit fees typically range from 0 to 2% of the total loan facility or the GDV of the project. By default this is set to 1% but can be changed.

Exit Fees Based on:

The exit fee, if applicable, is calculated as a percentage of the total loan amount or the GDV.

Stamp Duty or Land Tax?

For purchases then please enter the amount of stamp duty to be paid. If the property is already owned, but stamp duty is still a project cost, then please complete the box accordingly. We have an easy to use Stamp Duty Calculator that can calculate stamp duty for all types of property purchases in England, Wales, Scotland and Northern Ireland.

Any Other Costs?

The development finance calculator provides development profit and return on investment information. In order to obtain reliable information please add in any other project costs that have not already been taken into consideration.

Capital Releases:

Please enter when and also how much you require for each release. The development finance calculator calculates interest only on funds that have been released.
Total Releases: £0
Max Loan Amount: £0

Capital Reductions:

Please enter details of any capital reductions you are likely to make during the term of the facility. This may be due to initial property sales. Any capital reductions will reduce interest charges.
Calculation
Based on a Net Loan Amount of £0, over Months at an annual interest rate of 7%
Total Costs
Loan Amount (Net): £ 0
Facility Fee: £ 0
Interest Charges: £ 0
Gross Loan Amount: £ 0
Exit Fee: £ 0
Redemption Loan Amount (at end of term): £ 0
Valuation Costs: £ 0
QS Costs: £ 0
Lender Legal Costs: £ 0
Stamp Duty, Land Tax: £ 0
Other Costs: £ 0
Total Project Cost Before Finance: £ 0
Total Cost of Finance: £ 0
Total Project Cost Including Finance: £ 0
Development Profit Before Finance: £ 0
Development Profit Including Finance: £ 0
Return on Cost Before Finance Costs: nan %
Return on Cost Including Finance Costs: nan %
Loan Amount % of Total Project Cost: nan %
Loan Amount % of GDV: nan %
Breakdown
Month Release Repayment Gross Loan Amount
Chris Borwick
Chris Borwick
Development Finance Specialist
Alan Andrews
Alan Andrews
Commercial Consultant
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Development Finance Calculator

This is the only online development finance quoting calculator that provides instant results!

The development finance quotation will include interest charges, the various fees (facility, exit, valuation, QS, lenders legal), VAT refunds, profit before finance, profit after finance costs, total finance costs, total project cost, development profit and return on cost calculations. 

Therefore it is a very useful tool for developers who not only want to determine if a project will have a sufficient amount of profit, but also compare and experiment with various different options.

For example:

How does the overall cost of finance change from a plan offering a lower interest rate but an exit fee based on GDV to another plan with a higher interest rate but exit fee based on the loan facility.  

Or

Instantly compare the effect on development profit by changing the timings and amounts released at different stages of the project.

Our Development Finance Calculator is intended to provide a guide to the costs of development finance. For accurate written quotations please contact us.

How to use our Development Finance Calculator

Our development finance calculator has two settings – auto or manual.

The auto setting will work out the interest rate, facility fee, and exit fee for you, based on our most popular development finance plans.

The manual setting enables you to input these details yourself if you want to compare development finance quotes.

Once you’ve filled in the relevant information, you simply press calculate and the results will be displayed instantly.

You can then go back and edit the initial information that you provided to compare different options and how they affect the profitability of the project.

We do not ask for any personal details or contact information and we will not get in touch with you to discuss your quote.

If you would like to speak to us, get advice, and have a more tailored quote made up for you then please call us on 0800 644 6555 to speak to one of our advisors.

Auto setting

  • Land cost or residual value - If the development site is being purchased please enter the purchase price. If it is already owned then please enter the residual value. That way you can determine if it is more profitable to develop the site yourself or simply sell it.
  • Total cost of build - This box requires the total cost of the build and should include a total of all the projected costs other than the cost of the land, stamp duty, and any finance costs. This could include architect fees, planning costs etc. If you wish to break costs down instead then there is another section (other costs) where you can separate any other costs from the build costs.
  • Gross development value (GDV) - This is the expected gross development value once the project is completed, or if you are planning to sell before completion, what the expected value will be at the point of intended sale.
  • Loan term - This is the number of months that you will require the loan facility for. The maximum term is 48 months, but please get in touch if you need a longer financing term.
  • Stamp Duty  or Land Tax - If you are purchasing the land or property then enter any Stamp Duty or appropriate land taxes payable. If you are not sure how much this is then you can use our Stamp Duty calculator which will calculate the tax payable on purchases for all property types across England, Wales, Scotland, and Northern Ireland.
  • Any other costs - This is where you can enter any other costs that need to be taken into consideration, which you haven’t include in the build costs or Stamp Duty section. This is to give you an accurate representation of the profitability of your project.

Manual setting

If you are using the manual setting, then the following additional information will be required:

  • Interest calculated per – You can select whether you want the interest calculated as an annual or monthly rate. The default setting is annual based on most development finance plans being charged on an annual basis.
  • Interest rate – You can enter your own interest rate to compare options or quotes.
  • Facility fee – The facility fee is calculated as a percentage of the loan facility. This is set at 2% by default, but can be changed so that you can compare options.
  • Exit fee – Exit fees typically range from 1% or 2% and is calculated and added to the loan facility when it is redeemed. It is set at 1% as default but can be changed to compare options.
  • Exit fees based on – Exit fees can either be based on the gross loan amount or the GDV.

Capital releases

Once you’ve entered the land cost/residual value and total cost of build, the maximum loan amount available will be shown under the ‘capital releases’ section.

This is worked out by adding the land cost/residual value and total cost of build.

The maximum loan amount will be 85% of the total cost for loan facilities up to and including £300,000, and 90% for loan facilities above £300,000.

Based on the maximum loan amount shown, you can use this section to input when you need capital releases, and the amounts you need at each stage of the development project.

Example

You are purchasing a piece of land for a ground up house build project.

In month one you may want to release the land cost amount.

Then in month three, you may want to release the first lump sum required to get structural building work under way.

Then in month six, you may need a further lump sum to start on the internal work.

And so on.

The number of months available for releases will match the number of months that you entered in the first section of the calculator.

Capital reductions

This is where you can input any potential capital reductions.

The ‘add repayment’ dropdown box will allow you to select which month you expect to be able to make a capital reduction.

For example, if you are building multiple properties then you may complete sales before the end of the loan term and be able to pay off part of the facility.

Any capital reductions made before the end of the loan term will reduce interest charges.

Results Explained

Once you press calculate the calculator will display the following information:

Total costs

  • Net loan amount – This is the net loan amount that you require based on the releases that you inputted.
  • Facility fee – This has been calculated for you based on the loan amount, or it is the amount that you entered if you used the manual setting. You do not need to pay this upfront.
  • Interest charges – This will be the total amount of interest charged for your development finance facility.
  • Gross loan amount – This is the net loan amount plus the facility fee and interest charges. The facility fee and interest is added to the loan facility and are payable once the loan is redeemed.
  • Exit fee – This is 1% of the gross loan amount if you are using the auto setting. If you are using the manual setting it will be the percentage that you entered.
  • Redemption loan amount This is the gross loan amount plus exit fee. This is the amount you will owe at the end of the term.
  • Valuation costs – This is estimated based on the value of the land or property.
  • QS costs – This is estimated based on the build costs and GDV.
  • Lender legal costs – This is estimated.
  • Stamp Duty or land tax – This is the amount that you entered.
  • Other costs – This is the amount that you entered.
  • Total project cost before finance – This is the land cost plus the build costs, Stamp Duty, and other costs.
  • Total cost of finance – This is the total of the facility fee, interest charges, exit fee, valuation fee, QS fees, and legal costs added together.
  • Total project cost including finance – This is the total project cost plus the total cost of finance.
  • Development profit before finance – This is the amount of profit you should expect to make before taking the finance costs into consideration. This is worked out using the GDV minus the total project costs before finance.
  • Development profit including finance – This is the amount of profit you should expect to make after taking the costs of finance into consideration. This is worked out using the GDV minus the total project costs including finance costs.
  • Return on cost before financing costs – This is your percentage return on investment before taking finance costs into consideration.
  • Return on cost including finance costs – This is you percentage return on investment after taking finance costs into consideration.
  • Loan amount % of total project cost – This is the loan amount expressed as a percentage of the total project cost.
  • Loan amount % of GDV – This is the loan amount expressed as a percentage of the GDV.

 

Breakdown

This table shows you how the interest is charged and added to the loan facility each month.

You will only be charged interest on the amount that has been drawn down.

You will also see how capital reductions will impact the interest charged.

Interest Rates and Costs

We are completely independent development finance brokers who use all the best lenders. Interest rates and costs vary considerably depending on the type of development, location, amount of investment from the borrower, development experience and the amount being borrowed.

Typical Examples - Most Popular Plans

Development loans above £5 million
Up to 60%
Loan to Cost (LTC)
60% to 70%
Loan to Cost (LTC)
70% to 90%
Loan to Cost (LTC)
4.0% pa
2% facility fee and Nil exit fee
5.0% pa
2% facility fee and 1% exit fee
(based on amount borrowed)
6.25% pa
2% facility fee and 1% exit fee
(based on amount borrowed)

Development loans between £1 million and £5 million
Up to 60%
Loan to Cost (LTC)
60% to 70%
Loan to Cost (LTC)
70% to 90%
Loan to Cost (LTC)
5.75% pa
2% facility fee and 1% exit fee
(based on amount borrowed)
6.25% pa
2% facility fee and 1% exit fee
(based on amount borrowed)
7.25% pa
2% facility fee and 1% exit fee
(based on amount borrowed)

Development loans between £300,000 and £1 million
Up to 70%
Loan to Cost (LTC)
70% to 85%
Loan to Cost (LTC)
7% pa
2% facility fee and 1% exit fee
(based on amount borrowed)
9% pa
2% facility fee and 1% exit fee
(based on amount borrowed)

Our job is to find you the best possible deal for your development finance requirements.