Development Feasibility Calculator
A development feasibility compares total project cost against expected sales to show your profit and margin on cost. Enter your cost centres and expected sales below — the same first-pass screen a development financier runs on your deal.
Cost centres
Application fee, prepaid interest, loan set-up costs
Demolition, holding costs
Drafting, structural, hydraulics, soil, energy, sundries
Electrical, stormwater, sewer, water tapping, rates & taxes
Contract price — tick below to add a 5% contingency
Open space, infrastructure levies
Sales fees, advertising
Expected sales (gross realisation)
Gross realisation: $0
How the feasibility is calculated
Total development cost (TDC) is the sum of every cost centre: purchase price, stamp duty, conveyancing, finance costs, site preparation, professional fees, new services, building costs (with a 5% contingency), landscaping, contribution fees and agent fees.
Profit equals gross realisation (your total expected sales) minus total development cost. Margin on cost is profit divided by TDC — the figure development lenders quote when they say a project needs to “stack up at 15–20%”.
The indicative lend shows 70% of gross realisation — a common first-pass ceiling for a senior development facility, alongside limits against total development cost. Actual leverage depends on the lender, presales, location and your track record.
Development feasibility FAQs
What is a development feasibility?
A development feasibility is the calculation that compares the total cost of a property development — land, stamp duty, construction, finance, professional fees, contributions and selling costs — against the expected end sales, to determine the profit and profit margin. Lenders use it to decide whether a project stacks up before offering finance.
What profit margin do development lenders look for?
Most Australian development lenders look for a profit margin on cost of at least 15–20%. Below that, a project has little buffer against cost overruns or softer sales, and senior lenders will typically reduce leverage or decline. Margin on cost is profit divided by total development cost.
What costs should a feasibility include?
A complete feasibility includes the purchase price, stamp duty, conveyancing, finance costs (application fees, interest and set-up), site preparation and holding costs, professional fees, new services and utility connections, building costs with a contingency (typically 5%), landscaping, council contribution fees, and agent and marketing fees on sale.
What does "lend against gross realisation" mean?
Gross realisation (GR) is the total expected sale value of the completed project. Development lenders commonly cap a facility at a percentage of gross realisation — often around 65–70% — alongside a cap on total development cost. This calculator shows an indicative 70% of your expected sales as a first-pass guide.
Is this calculator a substitute for a professional feasibility study?
No. It is a first-pass tool that mirrors how a financier initially screens a project. A full feasibility involves a quantity surveyor, valuer, sales evidence and sensitivity analysis. We arrange those steps with you as part of structuring development finance.
This calculator is general information only, not financial or credit advice, and not an offer of finance. All figures are indicative and subject to lender assessment. All lending is for business or investment purposes.
Does your project stack up?
Send us your feasibility and we'll tell you honestly how lenders will read it — and what facility it can support.