FREE DEVELOPMENT CALCULATOR
Maximum Land Price Calculator
Find the land budget that meets a target profit on total development cost.
INDICATIVE RESULT
€4,320,988Cost ceiling before land fees€4,666,667
Land acquisition costs€345,679
Calculated directly from the assumptions shown.
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How the maximum land price calculation works
Land price = [GDV ÷ (1 + target profit on cost) − non-land costs] ÷ (1 + land acquisition costs).
Example calculation
A €20m GDV, €12m of non-land cost, 20% profit on cost and 8% acquisition costs determine the maximum land price.
INVESTMENT USE
How professionals use the result
Use this for a first land bid screen. A full appraisal should phase cash flow and calculate interest on actual funding needs.
Common mistakes
- Confusing profit on cost with margin on value
- Omitting interest
- Ignoring purchase costs
- Using gross instead of net sales proceeds
CLEAR ANSWERS