Development Profit Calculator
Analyse the profitability of your property development project. Enter your costs and expected sale value to calculate net profit, profit margins, and return on equity for your Hammersmith development.
Adjustments
Total Development Costs
£1,012,500
Contingency Amount
£20,000
Sales Costs
£30,000
Gross Profit
£537,500
Net Profit
£487,500
Profit on Cost
48.15%
Profit on GDV
32.50%
Return on Equity
160.49%
Return on equity assumes 30% equity contribution (£303,750)
How to Assess Development Profitability
Understanding your profit margins is essential before committing to any property development project. This calculator breaks down all key cost components, including purchase price, stamp duty, build costs, professional fees, finance costs, contingency, and sales costs, to give you a clear picture of your expected returns. The profit on cost and profit on GDV metrics are the two most commonly used measures by lenders and investors.
Most development finance lenders require a minimum profit on cost of 20% for residential schemes in the Hammersmith area. This provides a sufficient buffer against cost overruns, market movements, and unforeseen delays. The contingency allowance (typically 5-10% of build costs) and sales costs (1-3% of GDV, covering estate agent fees and legal costs) are often overlooked by less experienced developers but are critical to an accurate profitability assessment.
Disclaimer: This calculator provides indicative figures only. Actual development costs and sale prices will vary depending on market conditions, build specifications, contractor pricing, and the specific location within Hammersmith. We strongly recommend obtaining professional cost estimates and independent valuations before proceeding with any development. For expert advice on funding your project, please apply online or call our team on 020 3051 5960.
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