Formula
DM fee ≈ 2–4% of TDC
WhereSometimes structured as a fixed dollar amount, sometimes a percentage of revenue. Always sits inside TDC.
Why it matters
On in-house deals, the DM fee is the developer paying themselves; it is a cost line in the project but it returns to the same balance sheet. On external deals, it is a real cash outflow. The treatment changes profit on cost noticeably, so be explicit.
Worked example
For the Waterloo scheme with a TDC ex-DM-fee of $23.4M, a 3% DM fee adds $702,000 to TDC, taking it to $24.1M.
See it in action
Use this term in a real feasibility.
See these numbers in your own feasibility.
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