Land value calculator

The residual method values land from the scheme you plan to build: the sales value, less every cost and the profit you need. What is left is the most you can pay for the land.

The figures start as a worked example. Replace them with yours.

Area unit

Sellable area

m²

The floor area you will sell.

Sale price per m²

CAD

Gross built area

m²

The total floor area you will build, including walls and shared space.

Build cost per m²

CAD

Professional fees

Architects, engineers, and other consultants, as a share of the build cost.

Contingency

An allowance for cost overruns, as a share of the build cost.

Selling costs

Agents, marketing, and legal costs of selling, as a share of the sales value.

Developer profit

The profit you need, as a share of the sales value.

Finance rate per year

Interest on borrowed money. Building costs are drawn evenly, so on average half is borrowed; the land is borrowed for the whole build period.

Build period

months

Land purchase costs

Taxes and fees on buying the land, as a share of the land price. Enter the rate that applies to you.

Currency

Only changes how amounts are shown. Nothing is converted.

Results

Land value: -
Land value per built m²: -
Land as a share of sales value: -
Sales value (GDV): -
Selling costs: -
Build cost: -
Professional fees: -
Contingency: -
Build finance: -
Developer profit: -
Land purchase costs: -
Land finance: -

Model the whole project

Turn these figures into a full model with monthly cash flow, loans, partners, and reports a lender can read.

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How it is calculated

Sales value (GDV) = sellable area × sale price
Build finance = (build cost + fees + contingency) × rate × months ÷ 12 × 0.5
Land value = (sales value − selling costs − build cost − fees − contingency − build finance − profit) ÷ ((1 + land purchase costs) × (1 + rate × months ÷ 12))