Property Development Finance Calculator by Revolution Brokers
Use our Development Finance Calculator for immediate guidance as to the anticipated cost of your development finance needs. Full instructions below.
Our property development finance calculator tool helps to provide instant guidance as to the expected costs of your development lending
There are many factors to consider when comparing quotes such as:
VAT refunds claimable
Quantity Surveyor costs
Total project budget
Return on cost
The calculator allows you to compare different rates and scenarios to make informed decisions about the best finance options!
Using the Property Development Finance Calculator
To use our calculator, enter the information and figures and click 'calculate' to see your results. Changing the figures and values will show you how results alter in different scenarios.
1. Amount Required
This figure is the total net loan amount that you need, and includes the first release and each subsequent payment. You don’t need to add finance or interest charges to this figure - it is only the lending you need to receive after costs.
2. Loan Term
Your loan term is calculated in months, and is how long you anticipate needing your borrowing for.
3. Purchase Cost
Here you need to let us know the purchase price of the development site you wish to buy. If you already own the development site, then please still enter the purchase price - this helps us work out how profitable the development is.
4. Stamp Duty
This box is for the figure of stamp duty you expect to pay, or need to budget for. If you don't know what the stamp duty cost will be, our stamp duty calculator can work this out for you.
5. Available Funds
Please let us know how much cash you plan to invest into the cost of the development.
6. Total Build Cost
The total build cost is the total value of the build and all other project costs. Your build cost does not include the cost of the land, finance costs or stamp duty, and you can itemise your build costs to break this down.
7. Gross Development Value (GDV)
The GDV is the total value of the development that you expect to be able to sell it for when the project is completed.
8. Prime Funding - Initial Release
Development finance pays a first loan instalment - the prime funding is the value you need from your first loan payment.
9. Interest Calculation
Usually, interest is worked out per annum, but you can change this to per month if you wish.
10. Rate of Interest %
Our calculator uses 7% as a default rate per annum. If you would like to compare different interest rates, you can change this as required.
11. Further Releases
This section helps us understand what further funding releases you will need, and how these will be scheduled. This is important since interest is only payable on released funds. If you are uncertain as to the timing of your project, you can change the release values and timings to see how this impacts overall interest and profitability.
12. Facility Fees %
Our development finance calculator works out the anticipated fees payable for your development finance facility. These fees depend on the lender and the structure of the loan, and so there are several different rates payable. Facility fees are usually a percentage of the total loan facility and we use 1% as the default.
Other fees to consider and that our calculator will estimate for you include:
Quantity Surveyor fees
13. Exit Fees %
We use 1% as the default exit fee, payable as a percentage of the total loan facility amount. You can change this percentage to see how the results change at different rates.
14. Other Expected Costs
Every development is unique, and so here you can enter any other costs that we have not already requested. This will include any costs that were not already included in the Total Build Cost value.
15. VAT Reclaimable
If you expect to claim back any VAT, let us know how much here. This is useful since reclaimed VAT will bring down your project costs and increase the total profitability and expected return on investment.
Development calculator results
When you have entered all the relevant figures, click on the calculator button to see your results.
Our development finance calculator will show you:
Interest payable: how much interest you can expect to pay per month. This includes facility fees, the schedule of loan releases, and interest rates payable.
Net loan value: the total lending required, across all of the planned releases.
Facility fee calculation.
Interest payable: the total interest cost of the loan.
Gross loan value: This is the total including the net loan value, the facility fees, payable interest charges, and the exit fee.
Redemption value: The redemption value is the total gross loan amount, plus the exit fee.
We also calculate other costs to help you budget effectively for your development:
Quantity Surveyor costs
Legal costs (of the lender)
Any other costs we foresee from the information you provide us
Our development finance calculator is here to help you assess the profitability of your projects, and how the cost of finance will impact this.
Revolution Finance Brokers are specialist property finance brokers and work with property developers with all financing requirements. Our team scours the market to find the best rates and the best deals, and negotiate with lenders on your behalf to achieve optimal terms for your requirements.
For help and support with development finance options, give us a call on 0330 304 3040 or drop us a line at firstname.lastname@example.org