Development Finance Calculator
Size the maximum senior debt against loan to cost and loan to GDV, see the equity you need to put in, and check whether the scheme clears the profit-on-cost threshold lenders underwrite to. No email required, nothing stored.
- Maximum senior debt
- £1,200,000
- Equity you need to inject
- £300,000
- Total build and land cost
- £1,500,000
- Finance interest
- £128,250
- Arrangement fee
- £24,000
- Sales and disposal costs
- £72,000
- Projected profit
- £675,750
- Profit on cost
- 39.2%
Capped by loan to cost
Assumes build funds draw progressively
28.2% on GDV
At 39.2% profit on cost the scheme clears the ~20% threshold senior lenders typically underwrite to, with a return on equity of 225.3%. Stress it at a 10% GDV fall before you commit.
Indicative only. Interest is modelled on the land facility plus an average drawn balance of half the build facility across the term; real drawdown schedules, monitoring surveyor fees, valuation and legal costs will change the outcome. Not a quote or a recommendation.
The three numbers that decide the deal
Whichever cap bites first. Senior debt is the lower of loan to cost and loan to GDV. If GDV is the binding constraint, a more optimistic sales assumption will not fix it — lenders use their valuer's figure, not yours.
Profit on cost below 20% is where most senior lenders decline. Mezzanine or stretched senior can bridge the equity gap, at a price that only works when the margin is genuinely there.
Interest is on the drawn balance, not the facility. A well-structured drawdown schedule can save a meaningful share of the finance cost on a 15–18 month scheme.