Business & property finance
Development finance calculator
Use a transparent drawdown model to test a development budget. Enter the cash advances you want, then see the debt at completion and whether it exceeds the leverage limits you assume.
Your scenario
Jump to resultsDefaults are illustrative assumptions, not current rates or available offers. Figures stay on this page and are not sent to a lender.
Illustration · GBP
Your result
- Equity contribution to project costs
- £215,000
- Total finance cost
- £62,773
- Profit before profit tax
- £227,227
- Cash advances over project
- £595,000
- Interest on staged drawdowns
- £44,923
- Repayment including exit fee
- £657,773
- Gross debt / entered costs (LTC)
- 80.5%
- Gross debt / GDV (LTGDV)
- 59.3%
- Headroom below your assumed debt cap
- £36,677
- Profit with GDV −10%, build +10%
- £77,227
The LTC and LTGDV caps are your assumptions, not a lender's criteria. A positive margin does not establish viability.
Equal monthly drawdowns are an illustration. Your actual build schedule, equity timing and sales period can change the result.
Comparison lasts until you leave or refresh this page.
Month-by-month drawdown and interest schedule
| Month | Build draw | Interest | Closing debt |
|---|---|---|---|
| 1 | £33,333 | £2,042 | £242,275 |
| 2 | £33,333 | £2,343 | £277,951 |
| 3 | £33,333 | £2,646 | £313,931 |
| 4 | £33,333 | £2,952 | £350,216 |
| 5 | £33,333 | £3,260 | £386,809 |
| 6 | £33,333 | £3,571 | £423,714 |
| 7 | £33,333 | £3,885 | £460,932 |
| 8 | £33,333 | £4,201 | £498,467 |
| 9 | £33,333 | £4,520 | £536,320 |
| 10 | £33,333 | £4,842 | £574,496 |
| 11 | £33,333 | £5,167 | £612,995 |
| 12 | £33,333 | £5,494 | £651,823 |
How this calculator works
Project costs = acquisition + build + other costs + contingency. Equity = those costs minus requested cash advances. It is a total funding contribution, not a prediction of when your cash will be required; lenders may require equity first.
The arrangement fee is added to the day-one balance. The build advance is drawn in equal amounts at the start of every month. Interest is then charged monthly on the outstanding balance, including previous interest and the financed fee. The full month-by-month schedule is shown.
Gross exposure before the exit fee is compared with both caps: entered project costs × assumed LTC, and GDV × assumed LTGDV. A negative headroom is a funding gap under your own assumptions, not a lending decline. Lenders define eligible costs and gross facilities differently.
Exit fee is charged on cash advances. Profit is GDV less the entered project budget and all modelled finance costs, before profit tax. The downside reduces GDV by 10% and adds 10% of the build budget as a further overrun beyond the entered contingency, with no extra debt assumed.
A worked example
With a £100,000 day-one advance and £120,000 drawn evenly over 12 months, there are twelve £10,000 build advances. At 0% with no fees, completion debt is £220,000. At a positive rolled rate, charging interest on the whole facility from day one would overstate this particular drawdown model.
What the result cannot tell you
The equal-draw model excludes retention deductions, staged sales, a separate sales period, monitoring-surveyor fees unless budgeted, day-one LTV restrictions and lender-specific interest reserves. Exit fees may instead be based on GDV. Delays increase interest and can require more equity. This is not a feasibility valuation, finance offer or assessment of planning permission or developer experience.
Results are rounded for display; calculations use unrounded figures. A lender’s payment calendar, daily interest and rounding can produce different figures.
Put the numbers in context
TFP’s contact and introduction service is not open yet. You can use these tools without an enquiry. Get an appropriately qualified or authorised adviser’s help where the decision needs it.
Sources and responsibility
Published by The Finance Place. Methodology updated . The calculations are TFP illustrations; the sources explain the products and risks and do not validate a lending decision. No independent professional review is claimed.
Editorial and calculation standards