FREE VALUATION CALCULATOR
Residual Land Value Calculator
Work backward from completed value to the land price a project can support.
INDICATIVE RESULT
€3,703,704Value after target profit€16,000,000
Land cost including fees€4,000,000
Calculated directly from the assumptions shown.
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How the residual land value calculation works
Residual land value = [GDV × (1 − target profit on GDV) − non-land costs] ÷ (1 + land acquisition costs).
Example calculation
A €20m GDV, €12m of non-land cost, 20% profit on GDV and 8% land costs imply the residual land price.
INVESTMENT USE
How professionals use the result
Use residual land value during site appraisal. Test sales value, build cost, timing, finance and profit simultaneously in a full model.
Common mistakes
- Confusing profit on cost with profit on value
- Excluding finance
- Ignoring land transaction costs
- Treating a negative residual as zero
CLEAR ANSWERS