Development finance calculator
Estimate your maximum loan, the equity you'll need, and the scheme margin.
- Total project cost£0
- Capped by loan to cost£0
- Capped by loan to GDV£0
- Day-one equity required£0
- Gross profit (GDV − cost)£0
- Profit on cost0%
- Profit on GDV0%
Indicative only. Excludes interest roll-up nuance and lender-specific tests, and is not an offer of finance.
How the development finance calculator works
The calculator applies the two tests every senior development lender uses. Loan to cost limits the loan to a share of your total project cost. Loan to gross development value limits it to a share of the finished value. The maximum facility is the lower of the two, and the gap between that facility and your total cost is the equity you fund on day one.
What the scheme margin tells you
Profit on cost and profit on GDV are the headline margins a lender checks first. As a rule of thumb lenders look for around 15 to 20 percent profit on cost before finance for a fundable scheme; a thinner margin draws lower leverage or no offer, while a strong margin supports stretch senior or mezzanine to reduce your equity.
From estimate to offer
These figures are a starting point. A real facility is sized on the full appraisal, the sector, the planning position, the build contract and your track record. We model the whole capital stack, senior through stretch, mezzanine, JV equity, stabilisation and exit, and place it with the lenders that back your scheme.
Development finance calculator: common questions
How is the maximum development loan calculated?
Lenders apply two caps: loan to cost (a share of total project cost, usually 65 to 70 percent) and loan to gross development value (a share of the finished value, usually 60 to 65 percent). The maximum facility is the lower of the two figures, which this calculator works out for you.
What is loan to cost (LTC)?
Loan to cost is the proportion of total project cost, land plus build plus fees and finance, that a lender will advance. A 70 percent LTC on a £2m scheme is a £1.4m facility before the loan-to-GDV cap is applied.
What is loan to GDV (LTGDV)?
Loan to gross development value caps the loan against the finished, completed value of the scheme. At 65 percent LTGDV, a scheme with a £3m GDV is capped at £1.95m regardless of cost.
How much deposit or equity will I need?
Your day-one equity is the total project cost minus the maximum loan. On a typical senior facility that is around 30 to 35 percent of cost; stretch senior or mezzanine can reduce it toward 10 to 15 percent on a strong scheme.
Want this scheme priced properly?
Send us the numbers and we will come back with a view on fundability and likely terms within one working day.