FOR-SALE DEVELOPMENT / FEASIBILITY
What can this
build support?
Connect product, land, construction and financing to a project margin. Then test what changes when costs, sale prices or timing move.
The 10-home example is for learning. Replace it with your product plan, dated quotes, comparable sales and lender terms. Starting values are not local cost estimates or forecasts.
PROJECT ECONOMICS / BEFORE INCOME TAX
The case your assumptions make.
10 homes · 18 months · 16.46% modeled margin
- Project profit / loss
- $905,402
Gross sales less all modeled project costs, including financing.
- Project margin
- 16.46%
15.00% target · profit as a share of gross sales.
- Break-even sale price
- $454,694
Per home, with variable selling costs recalculated.
- Land ceiling at target margin
- $476,228
Total acquisition cost supported by the target margin, including land financing.
The entered case reaches your margin target. This is a scenario result under the entered assumptions, not a recommended land offer or a construction forecast.
Every cost has a place.
| Line item | Total | Per home |
|---|---|---|
| Gross sale revenue | $5,500,000 | $550,000 |
| Land acquisition | $400,000 | $40,000 |
| Vertical construction | $2,700,000 | $270,000 |
| Site development | $250,000 | $25,000 |
| Soft costs | $354,000 | $35,400 |
| Permit fees | $70,000 | $7,000 |
| Contingency | $236,000 | $23,600 |
| Construction interest | $193,533 | $19,353 |
| Loan fee | $26,065 | $2,607 |
| Other fixed carry | $90,000 | $9,000 |
| Selling costs | $275,000 | $27,500 |
| Total project cost | $4,594,598 | $459,460 |
| Profit / loss | $905,402 | $90,540 |
Soft costs and contingency use hard plus site costs. Contingency is treated as fully spent. Loan principal is financing, so it is not counted again as an expense. Rounded line items may differ slightly from rounded totals.
FUNDING BEFORE SALES
$1,713,098
Modeled equity for eligible costs, interest, the loan fee and fixed carry. Selling costs come from closing proceeds.
- Eligible cost basis
- $4,010,000
- Loan commitment · 65% LTC
- $2,606,500
- Average drawn balance · 55%
- $1,433,575
This is not peak cash required or an upfront cash quote. A draw schedule, equity-first funding, retainage, phased sales or lender cash requirements can change liquidity needs. Interest and fees do not increase the loan commitment.
Price and cost move together.
Rows change hard and site costs. Columns change the sale price per home. Each cell shows project profit and margin; the outlined cell is your entered case.
| Hard + site costs ↓ Sale price → | −10% | Unchanged | +10% |
|---|---|---|---|
| −10% | $756,28815.28% margin | $1,278,78823.25% margin | $1,801,28829.77% margin |
| Unchanged | $382,9027.74% margin | $905,40216.46% marginEntered case | $1,427,90223.60% margin |
| +10% | $9,5160.19% margin | $532,0169.67% margin | $1,054,51617.43% margin |
Soft costs, contingency, borrowing, interest, fees and selling costs recalculate. Land, permit fees, duration and fixed monthly carry stay unchanged. These scenarios do not predict a market outcome.
TIMING STRESS / +6 MONTHS
What does waiting cost?
The same project runs six months longer at the same sale prices, construction costs and average drawn balance assumption.
- Additional interest
- $64,511
- Additional fixed carry
- $30,000
No extension fee, compounding, cost escalation or sale-price change is assumed. The extra months use your average draw percentage, not an assumed fully drawn loan.
| Measure | 18 months | 24 months |
|---|---|---|
| Total cost | $4,594,598 | $4,689,109 |
| Equity before sales | $1,713,098 | $1,807,609 |
| Profit / loss | $905,402 | $810,892 |
| Project margin | 16.46% | 14.74% |
Assumption record
- Homes to sell
- 10
- Average home size (sq ft)
- 1800
- Sale price per home ($)
- 550000
- Selling costs (% of revenue)
- 5
- Target project margin (%)
- 15
- Total land acquisition cost ($)
- 400000
- Hard cost per sq ft ($)
- 150
- Site work per home ($)
- 25000
- Permit fees per home ($)
- 7000
- Soft costs (% of hard + site)
- 12
- Contingency (% of hard + site)
- 8
- Project duration (months)
- 18
- Construction loan-to-cost (%)
- 65
- Annual interest rate (%)
- 9
- Loan fee (% of commitment)
- 1
- Average drawn balance (%)
- 55
- Other fixed carry per month ($)
- 5000
MODEL BOUNDARIES
Keep the assumptions visible.
Debt equals loan-to-cost times land, hard construction, site work, soft costs, permits and contingency. Interest equals committed debt × average draw percentage × annual rate × months ÷ 12. The loan fee applies to the commitment. Financing, carry and selling costs sit outside the borrowing basis.
Break-even sale price covers costs before selling, divided by homes × (1 − selling cost rate). The land ceiling solves for your target profit-to-sales margin while recalculating the financing cost of land. It assumes the product and unit count remain fixed.
The model excludes a detailed draw and absorption schedule, tax treatment, IRR, lender covenants and unentered costs. Its results depend on your assumptions. JSON downloads include those assumptions and model definitions; values are not saved to a server.
Model new-build-feasibility-1.0.0 · USD · Nominal values · Before income tax
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