Development Profit Calculator
Assess the viability of your development project by calculating gross profit, profit margin, and return on costs.
Project Costs
Profitability Analysis
Cost Breakdown
Gross Development Value
£2,500,000
Total Development Costs
£1,755,000
Gross Profit
£745,000
Profit Margin (on GDV)
29.8%
Return on Costs
42.5%
Profit on Cost
42.5%
Understanding Development Profit Metrics
Profit Margin is calculated as gross profit divided by the GDV, expressed as a percentage. Most lenders and investors look for a minimum profit margin of 20% on GDV to ensure the project has sufficient buffer against market fluctuations.
Return on Costs measures the gross profit as a percentage of total development costs. This metric helps you understand how efficiently your capital is being deployed across the project.
Contingency is a critical safety net applied to build costs, typically between 5% and 15%. It covers unexpected expenses such as material price increases, weather delays, and unforeseen ground conditions.
This calculator provides estimates only. Contact us for a personalised quote based on your specific project.