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Residual land value calculator

What a builder can pay for a site is what’s left after selling the homes and paying every cost, including profit. Change any number and the answer updates. Nothing you type leaves your browser.

The scheme
Costs
Finance, profit, Part V

Indicative, not a valuation
Residual land value
€1.75m

€44k per home · €1.75m per hectare (€706k per acre)

Sales value, net of VAT and Part V€17.2m
− Build cost€8.40m
− Site works and infrastructure€1.00m
− Professional fees€1.03m
− Contingency€470k
− Development contributions€480k
− Utilities and water connection€240k
− Marketing and sales€345k
− Finance on build costs€763k
− Developer’s profit€2.58m
= Left for the land, before acquisition costs€1.91m

If one input moves 10%

Sale price€441k … €3.05m
Build cost€2.69m … €799k
Profit€1.98m … €1.51m
Finance rate€1.81m … €1.68m

Break-even sale price (land worth €0): €450k per home.

How the sum works

  1. Sales value: homes × price, less VAT, less the discount on the Part V homes transferred to the council.
  2. Less build cost (floor area × € per m²), site works, fees, contingency, development contributions, connections and sales costs.
  3. Less finance on the build costs: rate × programme × average drawdown.
  4. Less the developer’s profit as a share of sales value.
  5. What is left, divided by one plus stamp duty and fees on the land, is the residual land value.

The defaults are mid-points of industry ranges, not a quote for your site. The model leaves out interest on the land during planning, sales phasing and abnormal costs. It is indicative, not a valuation. Get a valuation from a registered valuer before you bid.

How many homes fit: homes per hectare calculator. The levies per home: development contributions calculator.