Calculate residual land value for real estate investments and properties
Enter finished project value, construction costs, profit requirement, and soft costs. The calculator backs into maximum land value.
Build 10 townhomes worth $5M total. With $3M construction, $500K profit goal, $300K soft costs, pay maximum $1.2M for land.
Working backward from finished project value, subtracting all costs and desired profit to determine maximum you can pay for land.
20-30% for experienced developers on standard projects. Higher margin (30-50%) for complex projects or inexperienced developers to cover risks.
Hard costs (construction), soft costs (architecture, permits, fees), financing costs, developer fee, contingency (5-10%), and desired profit.