Development Profit Calculator — Greenwich

This development profit calculator gives Greenwich property developers a clear picture of project profitability by accounting for all major cost categories. It calculates four key metrics:

• Gross Profit — the difference between GDV and the two largest direct costs: purchase price and build costs. This gives a top-level view of the margin before overheads.
• Net Profit — your true profit after deducting all costs including finance, professional fees, selling costs, and contingency from the GDV.
• Profit Margin — net profit expressed as a percentage of GDV. Most lenders and developers target a minimum 20% profit margin on cost for the project to be viable.
• Return on Capital Employed (ROCE) — net profit divided by the total capital invested in the project. This measures how efficiently your capital is working and is useful for comparing different investment opportunities.

Selling costs typically include estate agent fees (1-2%) and legal conveyancing costs. Contingency is calculated as a percentage of build costs and should be set at 10-15% for new builds and 15-20% for refurbishments to account for unexpected costs during construction.

For expert guidance on structuring your Greenwich development project for maximum profitability, speak to one of our specialists using the form below.