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Property development feasibility calculator

Run an end-to-end residential development feasibility, revenue, total development cost, profit, profit on cost, development margin and equity IRR, without rebuilding a spreadsheet model.

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Formula

Profit = Net realisation − TDC

Net realisation = GRV − selling costs − GST. TDC = land + construction + fees + contributions + finance + contingency.

What it does

A property development feasibility calculator estimates whether a development site stacks up by combining land cost, construction cost, consultant fees, finance, GST, sales revenue and project timing. Popurise uses these inputs to calculate key metrics such as profit, profit on cost, development margin, cash flow and IRR.

Calculation logic

How the calculator reads the deal

Gross Realisation Value (GRV)
Expected sale value of the completed dwellings or lots.The top-line revenue assumption before development costs.
Total Development Cost (TDC)
Land + acquisition + construction + fees + finance + contingency + selling costs + other project costs.The all-in cost base used to test the site.
Development Profit
GRV − Total Development Cost.The estimated surplus before tax, based on the assumptions entered.
Profit on Cost
Development Profit ÷ Total Development Cost.Profit relative to the total cost required to deliver the project.
Development Margin
Development Profit ÷ GRV.Profit as a percentage of total expected revenue.

Inputs

Site
Address, lot size, zoning, allowable GFA.
Scheme
Number of units, mix (1/2/3-bed), average size, car parks.
Revenue
Per-unit pricing, car space pricing, agent and marketing rates.
Construction
Build rate per m², construction contingency, professional fees.
Statutory
Section 7.11 contributions, authority fees, GST treatment.
Finance
Equity, senior debt facility, interest rate, drawdown profile.
Timing
Acquisition, design, construction and settlement schedule.

Output

Outputs
GRV, TDC, profit, profit on cost, development margin, equity IRR, peak equity, peak debt, plus monthly and annual cashflow.

Worked example

A 28-apartment scheme in Waterloo on a 1,200 m² site:

  • GRV (28 units + car spaces): $28.6M
  • Net realisation: $26.2M
  • TDC: $24.1M
  • Profit: $2.1M
  • Profit on cost: 8.7%
  • Development margin: 8.0%
  • Equity IRR: 14.5%
  • Peak debt: $16.4M
  • Peak equity: $5.2M

Below typical hurdles. The scheme needs higher pricing, lower build cost, or a different scale before it clears IC.

What the calculator covers

Popurise runs the full Australian residential cost stack, including GST on revenue, statutory contributions, S-curve finance drawdown and selling costs on settlement, without you maintaining a single formula.

Questions

Frequently asked

What does a property development feasibility calculator do?

It estimates whether a development site is financially viable by modelling revenue, costs, finance, timing and return metrics. A good feasibility calculator helps developers test whether the site price, construction cost, sales assumptions and debt structure still produce an acceptable profit and return.

What inputs do you need for a development feasibility?

The main inputs are site purchase price, acquisition costs, construction costs, consultant fees, authority costs, contingency, selling costs, finance assumptions, project timing and expected sales revenue. More detailed models may also include GST, staging, holding income, commercial revenue, debt drawdowns and monthly cash flow.

What outputs should a feasibility model show?

A useful feasibility model should show gross realisation value, total development cost, development profit, profit on cost, development margin, cash flow, funding requirement and IRR. For live deals, monthly timing and debt drawdown are often just as important as the headline profit number.

What is a good profit on cost for property development?

There is no universal number because required returns depend on location, risk, asset class, planning status, funding structure and market conditions. Many developers use profit on cost, development margin and IRR together rather than relying on one metric.

Is a spreadsheet enough for property development feasibility?

Spreadsheets can work, especially for experienced developers with strong modelling discipline. The risk is version control, hidden formula errors, slow scenario testing and inconsistent assumptions. Feasibility software is useful when teams need faster screening, clearer outputs and cleaner comparison across sites.

Can Popurise replace EstateMaster or ARGUS?

Popurise is designed for fast development feasibility screening and scenario analysis, especially for Australian property teams. EstateMaster and ARGUS are established enterprise tools, so whether Popurise replaces them depends on the team's workflow, reporting requirements and modelling complexity.

Is this calculator just for apartments?

It's optimised for residential apartments and townhouses. Single-house and land subdivision models are on the roadmap but not the main use case today.

Do I need to know my build cost per square metre?

Yes. Popurise accepts your construction rates as inputs, we don't publish a cost database. Use a recent QS estimate, or your own historical build rates.

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