Development finance calculator
Estimate how much development finance a scheme might support, how much of your own money it needs, and what is left as profit.
How this calculator works
The loan is capped at the lower of two limits: a percentage of total costs (loan to cost) and a percentage of the finished value (loan to GDV). Your contribution is total costs less the loan. Interest is estimated on the average drawn balance, because build funds are released in stages as work is certified, then multiplied by the term. Profit is GDV less total costs, interest and fees, and profit on cost divides that by total costs.
It is a quick feasibility check, not an appraisal: it ignores VAT, sales timing and rolled-up interest compounding, and it treats fees as a percentage of the loan.
What lenders will look at
Lenders look at the developer's experience, planning, the build contract, the valuation and the exit as much as the numbers. Schemes with thin profit on cost, or a first-time developer, may be offered less leverage. Where the senior loan leaves a gap, mezzanine finance can sometimes sit behind it at a higher cost.
When the build is finished but units are unsold, development exit finance can repay the build loan. Conversions are covered on our permitted development finance page.
Find out more about property development finance, or tell us what you need and we will search the market for lenders suited to your case.
Questions about this calculator
How much development finance can I get?
It depends on the scheme, your experience and the lender. The loan is usually limited both by a share of total costs and by a share of the finished value, and the lower figure applies. Use the calculator with your own assumptions, then ask for real terms.
What is the difference between loan to cost and loan to GDV?
Loan to cost compares the loan with what the scheme costs to deliver. Loan to GDV compares it with what the finished scheme is worth. Lenders use both to make sure you have money in the scheme and that the end value covers the debt.
Why is interest worked out on part of the loan?
Build money is drawn in stages, so you only pay interest on what has been drawn. The average drawn figure is a rough way to reflect that; a lender or quantity surveyor will model the real drawdown schedule.
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Want real figures for your business?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search our panel of 300+ lenders for options suited to your case. No obligation, and free to enquire.