Development Finance Calculator
Estimate commercial development finance options. Calculate loan allocations, project interest capitalization (roll-up) timelines, and analyze net profit margins.
Financial Summary
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Interest Capitalization Timeline
| Month | Cumulative Loan Drawn | Monthly Interest Charged | Cumulative Interest Rolled Up | Total Outstanding Balance |
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Frequently Asked Questions
What is development finance?
Development finance is a short-term funding solution used specifically to finance construction, property development, or major renovation projects. It typically funds the purchase of the land/property and the subsequent building costs.
How is interest calculated on development loans?
Unlike standard mortgages where interest is paid monthly, development finance interest is typically capitalized (rolled up) and added to the loan balance. This means the borrower pays no interest during the build, and the total accrued interest is settled when the property is sold or refinanced.
What is Loan-to-Cost (LTC) and Loan-to-GDV (LTGDV)?
LTC represents the percentage of total build and purchase costs the lender will cover. LTGDV is the percentage of the completed development value they will finance. Standard development loans cover up to 70-80% of LTC or 60-65% of GDV.
What is Gross Development Value (GDV)?
GDV is the expected market valuation or final selling price of the completed property development project once all construction works are fully finished.
Our financial calculators are built to match standard compound interest and loan amortization mathematics. Every calculation is reviewed for mathematical accuracy against official guidelines from national regulatory boards.